Industry & Economy
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Credit Policy
Mixed reactions from trade unions
Our Bureau
Kolkata
,
Oct. 26
EMPLOYEE unions presented mixed reactions to the credit policy, commending the Reserve Bank of India's overall stance on credit and investment growth but criticising what they said were inadequate steps to tackle inflation.
The views forwarded by the unions are partly based on the RBI's focus on providing adequate liquidity and supporting investment and partly on the belief that much more is required to be done for small borrowers, especially those who depend on fixed-income securities for meeting their financial requirements.
According to Mr Ashok Dutta, Convener, United Forum of Bank Unions (UFBU), the apex bank has not displayed any special concern for small investors, including those who are affected by low interest rates in a situation marked by high inflation.
UFBU will make fresh representations before the Government on the matter, he said.
Bank unions also underlined the fact that there had been a scaling down in the latest GDP projection vis-à-vis what was considered likely.
It has been pointed out that the monetary authorities must pay greater attention to this, especially when the Government wants to focus on investment-led growth.
Mr Debashish Banerjee, General Secretary of United Bank Officers Association, said that the latest credit policy has not surprised the banking community in any significant manner.
"The Governor has moved along predictable lines, particularly in the context of macro factors like bank rate, which has been kept unchanged."
A number of steps have been taken to boost lending to important areas, which will have a positive impact in the long run, he added.
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