The Tirupur Exporters’ Association (TEA) has urged banks to pass on the reduction of repo rate by 25 paise to exporters.
TEA President Raja M Shanmugham welcomed the RBI’s decision to cut the repo rate from 6.25 per cent to 6 per cent in the first bi-monthly Monetary Policy for 2019 -20.
The knitwears garment exporting units, particularly the MSMEs, would benefit by this as they have been suffering due to macro-economic changes, he also added.
Only very few banks have passed on the benefit to the customers, by which the real intention of the RBI for reduction of policy repo rate could not be achieved, he further quoted.
The reduction of interest would pave the way for the growth of investment and exports, said Raja.