RBI Governor Shaktikanta Das announced additional measures for MSME, Small Businesses and Individuals to help counter the impact of pandemic. NewsBarons connects with leading industry leaders to share their perspective.
The measures taken by RBI are well-timed: Rohit Poddar
With the fresh challenge of the historic rise in COVID cases and shortages of vaccines owing to the fury of the second wave of the pandemic, the measures taken by RBI are well-timed. The restructuring of loans for loans under 25CR by NBFC is a smart move to ease the burden on the borrower. SMEs and MSMEs have played a critical role in driving the economy over the last few years. Furthermore, the MSME sector has had a restructuring window since March 2019, and extending it by two years would not only benefit the MSME sector but will also help the system in generating more liquidity.
[Rohit Poddar is the Managing Director of Poddar Housing and Development Ltd.]
Proactive measures by the RBI are welcome and reassuring: Rajani Sinha
The battle with COVID-19 has prolonged over a year now and while the country was coping well until early this year, the second wave of infections in March has translated into significant loss of lives. Presumably on economic output, the dent will depend on the timeline of this wave and associated regional lockdowns. Hence, proactive measures by the RBI are welcome and reassuring. Expansion of liquidity window particularly to the healthcare sector is a need of the hour. Besides, additional liquidity window and resolution mechanism for loan restructuring for small and medium business will cement their position to cope up with the adverse demand conditions created by this more severe wave of pandemic. We believe that the central bank will keep its guard on in the ensuing period and take steps as warranted by the evolving on ground economic situation.
[Rajani Sinha is the Chief Economist & National Director – Research at Knight Frank India]
RBI Governor’s address has provided a much needed re-assurance in these times of uncertainty: Sanjay Palve
RBI Governor’s address has provided a much needed re-assurance in these times of uncertainty. The speech highlighted RBI’s constant efforts to stabilise the economy and provide relief to the ailing and badly hit sectors due to the second wave of the pandemic. The announcement of schemes such as the second round of loan restructuring and Banks being incentivised to extend swift credit to weak sectors are all steps in the right direction. The priority right now is to save lives and the On-tap liquidity facility of Rs 50,000 crore to ease access to emergency health services is just what the country needs. We all need to stay strong and united to overcome this unprecedented situation and the RBI and our government are taking all measures in their capacity to achieve this”
[Sanjay Palve is the Senior Managing Director of Essar Capital Ltd.]
RBI should take into consideration the needs of the real estate sector: Dhruv Agarwala
The Reserve Bank of India has reiterated its commitment to mitigating the damage due to coronavirus by providing support to many quarters, including a Rs 50,000 crore Term Liquidity Facility, to ease access to emergency health services. The real estate sector was anticipating steps such as assistance in loan restructuring and a moratorium to help it get through these difficult times. In its next announcement, the RBI should take into consideration the needs of the real estate sector.
[Dhruv Agarwala is the Group CEO of Housing.com, Makaan.com and Proptiger.com]
An ambitious effort to strengthen the Indian economy: Rajesh Sharma
Today’s fiscal announcement by RBI announcement has come at an opportune time and shows a certain amount of optimism in the hardship of an unfortunate pandemic. The targeted announcement by the central bank shows an ambitious effort to strengthen the Indian economy. Opening a one-time restructuring window for individuals and MSME till September 2021 will give an impetus to scale up their business without worrying about financial destitution. Also, the extension window for the earlier availed borrower would ease liquidity challenges and facilitate meeting the objective of inclusive growth. Additionally, On-tap liquidity of Rs 50,000 crore at repo rate and qualification of priority lending is focusing on strengthening the health infrastructure of the country.
[Rajesh Sharma is the Managing Director of Capri Global Capital Ltd.]
Real estate sector will benefit from the economy’s health: Amarjit Bakshi
We welcome the first round of measures announced by the RBI. The steps such as one-time loan restructuring to small borrowers and MSMEs or Term Liquidity Facility for emergency health services will ensure that the economy stays on the growth path. The real estate sector will benefit from the economy’s health, which will translate into buyer confidence looking to stay in secured gated communities away from the cascading effects of the pandemic on health.
[Amarjit Bakshi is the CMD of Central Park]
We anticipate that real estate sector will be given due consideration in the next round of announcements: Amit Modi
After the first wave subsided in 2020, the economy was in a better place, but the situation has dramatically changed after the second wave hit the country. The RBI eased lending and restructuring norms for all stakeholders, particularly those smaller businesses and MSMEs that have been impacted by the second wave, as part of the first round of comprehensive strategy against the pandemic. We are confident that it will amplify the positive sentiment seen in Q1 2021 across all sectors, including the real estate market, which outperformed expectations with a significant increase in sales. We anticipate that the sector will be given due consideration in the next round of announcements, allowing for further progress.
[Amit Modi is the Director ABA CORP & President (Elect), CREDAI Western UP]
RBI has taken measures to restore investor faith: Sarthak Gaur
The country’s current condition must be balanced with calibrated, sequenced, and well-timed policy steps. The Reserve Bank of India (RBI) has taken measures to restore investor faith. The relief provided to vulnerable category borrowers, such as individuals, small businesses, and MSMEs, is much-needed, as localized restrictions have disrupted them. The improvement in this segment would lead to an improvement in the mall segment, which has been in a difficult situation in some cases due to losses faced by the retailers. Overall, the first round of announcements was fair and balanced, addressing the most pressing issues.
[Sarthak Gaur is Director at Gaurs Group]
The absence of a moratorium announcement will be viewed positively by the market: Akshay Taneja
The absence of a moratorium announcement will be viewed positively by the market, implying that the situation is not dire enough to warrant another moratorium. The RBI’s actions are unlikely to give the market a big boost, but they are likely to provide downside support and boost morale. However, the pandemic has had a wide impact on the industry. A rollout of wider relief initiatives aimed at mid-corporate and large borrowers, and industries heavily affected by the pandemic, such as real estate, hospitality, would have been beneficial.
[Akshay Taneja is the Managing Director of TDI Group]