RBI cuts rates by 25 bps: India Inc hails central bank decision, says it will induce liquidity in economy

The Reserve Bank of India cut its policy interest rate by 25 basis points in a widely expected move on Thursday, while also changing its monetary policy stance to “accommodative” after the economy grew at its slowest pace in over four years in the January-March quarter.

The six-member monetary policy committee (MPC) cut the repo rate to 5.75 percent as predicted by 44 of 66 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.50 percent.

Rajnish Kumar, Chairman, SBI

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The RBI policy decision to change the policy stance to “accommodative” will simultaneously help the financial system to navigate to a lower term structure of interest rates and also accommodate growth concerns. On the regulatory front, the decision to lower the Basel III Leverage Ratio will augment the lendable resources of the Banks. Also the move to scrap transaction charges for RTGS & NEFT will boost digital transactions. The decision to issue draft for “on-tap” licensing of small finance banks will add depth to this sector. Launching of the on-line trading platform for retail participants is a positive development for small & medium forex customers. The RBI intent to harmonize existing regulations for different money market products augurs well for market transparency.

Zarin Daruwala, CEO, Standard Chartered Bank, India

The combination of the repo rate cut, the change to an accommodative stance and the resolve to provide adequate liquidity, will provide the impetus to counter growth and investment headwinds. A review of the liquidity framework is a welcome move and should aid monetary transmission. Additionally, the easing of the leverage ratio requirement will boost bank lending and should serve as the much needed counter cyclical stimulus.

Garima Kapoor, economist and vice president, Elara Capital, Mumbai 

A shift in stance to ‘accommodative’ is welcome as it will pave the way for transmission to lending rates, which so far have been inadequate. We expect the MPC to cut rates by an additional 50 bps through the year while continuing to fine-tune liquidity support through a combination of OMO purchases, forex swap and CRR cut.

Parth Mehta, MD, Paradigm Realty, Mumbai

The rate cut of 25 bps was imperative to induce liquidity in the downward spiral economy on the back of all indicators showing slowdown. The stance change from ‘neutral’ to ‘accommodative’ by the RBI indicates the cognizance about the current fragile business environment and we expect further rate cuts. Rate cuts shall enable affordability in terms of home loans and thus lower equated monthly instalment (EMI), lower GST, and tax rebate for the middle class as per the interim budget. All these shall give some sales impetus to the real estate sector.

Mani Rangarajan, Group Chief Operating Officer-Housing.com, Proptiger.com, Makaan.com, Fastfox

This move to reduce the repo rate will be great from a sentiment point of view, and will add to the current wave of optimism that has been infused into the market, with the re-election of the NDA government. Whether home buyers benefit from this directly or not, will depend largely on whether the banks pass on the rate cut benefits to them. In the past, that has not happened. However, this fact is also to be evaluated in light of another fact—with the ongoing NBFC crisis and increasing NPAs, reducing interest rates for borrowers, is not very easy for banks.

Narendra Pani, Dean, School of Social Sciences, National Institute of Advanced Studies, Bengaluru

While the RBI’s effort is no doubt to boost investment, it is not clear how much of the reduction in repo rates will be passed on. The criminalisation of large defaults brings with it a discomfort among bankers to be associated with very large loans. Less successful commercial banks may also feel the need to keep their credit deposit ratios low, in case they suddenly need to write off large NPAs. They may not be too enthusiastic about lowering rates to increase credit. Secondly, a large part of the crisis is one of demand rather than supply. Interest rate cuts are designed to increase the supply of funds for investment, and would not have a direct effect on demand.

Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company

The cut in repos rate was broadly in line with expectations. The shift in gear from neutral to accommodative removes ambiguity wrt the direction of rate action. The growth focus, without losing sight of inflation seems to have prompted this move. Liquidity in the banking system has seen a movement from deficit to positive zone. It is important to see this situation continues to ensure credit transmission. India rates would continue to find anchor and maintain a softening bias going forward.

Rustom Irani, Managing Director, Hitachi Payment Services

India is still a cash economy, in spite of increasingly better access to and adoption of digital payment mechanisms. The decision to set up a committee to examine the entire gamut of ATM charges is definitely an accommodative and much appreciated stance by RBI, thereby also indicating its cognizance about the increasing demand of cash as also seen by the increase of cash in circulation (CIC). An upward revision in interchange fees will help banks and WLA Operators to deploy more ATMs to provide much needed access to cash.

Suvodeep Rakshit, senior economist, Kotak Institutional Equities, Mumbai

The change in stance to ‘accommodative’ was a bit of a surprise. Debt markets will take this as a significant positive move, though most of the rate cut cycle is probably over. The tone of the RBI policy was dovish and highlights the concerns on growth. We maintain our call for another 25-bp rate cut in August factoring in the benign inflation trajectory and growing concerns on growth. However, the transmission of rate cuts will be key and the RBI should aim to maintain liquidity, at least at neutral over the next few months.

Sakshi Gupta, economist, HDFC Bank, Gurgaon

If growth impulses continue to remain weak in Q1, below the RBI’s target, and inflation impulses remain muted given normal monsoons, there is room for another rate cut of 25 bps in August. On growth, high frequency indicators continue to signal lower activity in Q1. Further, an unfavourable base effect could mean that GDP growth numbers remain muted in H1 FY19-20. Some pick-up in activity is expected in H2. For the year, the growth forecast is 7 percent.The government is likely to stick to its fiscal deficit target announced in the interim budget of 3.4 percent of GDP. That said, higher growth will be necessary to achieve this target.

Anagha Deodhar, economist, ICICI Securities, Mumbai

The recently released GDP numbers show that growth is faltering. Given the challenging domestic and global environment, growth is likely to remain weak in H2FY20. Although supporting growth is not the MPC’s primary mandate, in the current environment it has assumed greater significance. Given the lower growth and inflation expectations, it was apt to change the stance to ‘accommodative’. It indicates that more rate cuts are on the table – possibly in the next policy itself. The government is likely to continue walking on the fiscal consolidation path. We do not expect large-scale sops in the budget as the government is walking on a tight rope when it comes to the fiscal situation. However, we could see increased focus on employment generation, labour-intensive industries and boosting investments.

Devendra Pant, chief economist, India Ratings, New Delhi

The 25-bp cut with ‘accommodative’ stance with 6-0 vote shows that with inflation below the RBI’s target of 4 percent, growth concerns have come to the forefront. By changing its stance, the RBI has communicated to the market that the growth slowdown is real. A working group on liquidity is a welcome step. With system liquidity in surplus mode in the past few days, lending rates should come down. The forthcoming budget is the real test for the government. The government has to find money for social spending and undertake some hard reforms to improve tax collection and adhere to the fiscal consolidation trajectory.

Joseph Thomas, Head-Research, Emkay Wealth Management, Mumbai

The RBI policy is exactly on the lines expected by most of the market participants. The repo rate cut of 0.25% and the change of stance from ‘neutral’ to ‘accommodative’ is key to supporting the sagging economic growth. The projected growth has been lowered to 7%. The policy also has broad indications of more actions on the liquidity front from the RBI in the coming days. This also confirms the commitment of the central bank to better transmission of the rate-cut effects through liquidity.

Rupa Rege Nisure, chief economist, L&T Financial Holdings, Mumbai

Today’s policy actions are perfect and give a clear signal that the RBI will continue with easy monetary conditions until it sees a definite improvement in growth-inflation mix. Going by the macro undercurrents, the rate-cutting cycle will continue in the coming quarters as well. Recent GDP numbers were consistent with the slowdown predicted by high frequency leading indicators and the RBI has taken a serious note of it. The government too will address growth concerns in its upcoming full Budget in July and there are pleasant signs that both the government and the RBI will work in tandem to pull the economy out of the trap. Transmission will happen meaningfully if the banking system witnesses surplus liquidity conditions for a sizeable period and if the RBI undertakes confidence boosting measures for the NBFC sector.

Ranen Banerjee, Partner & Leader – Public Finance and Economics, PwC India

 There was no surprise in the policy measures announced by RBI. It was already anticipated that there will be at least 25 basis point cut in repo and also a change in stance. The change in stance is more important as it provides a monetary policy direction message. Given the slowing momentum of the economy and all indices indicating stress in the economy, it is now over to the fiscal policy of the government to fan the animal spirits. The government may take on a higher deficit in its upcoming budget towards more capital expenditure to pump prime the economy.

Jayant Mehrotra, Chief Financial Officer, Lodha Group

RBI’s decision on rate cut by 25 bps, which is also for the third time in a row is a welcome move and home buyers should expect cheaper loans from banks. However, the concern around the actual transmission of rate cuts to effective lending rates persists. Effective transmission and improvement in the  liquidity conditions would provide a boost to the real estate market.

Khushru Jijina, MD, Piramal Capital and Housing Finance

The downward revision of growth projection by the Reserve Bank of India (RBI) from 7.2 percent to 7 percent in 2019-20 calls for the implementation of additional rapid policy interventions by both RBI as well as the Government. The unanimous decision by the Monetary Policy Committee (MPC) to cut the repo rate by another 25 bps is a step in the right direction. NBFCs are instrumental in providing credit to MSMEs and real estate sectors, that are significant to India’s GDP. MSMEs contribute 31 percent of the GDP, 40 percent of exports and hires 25 percent of the labour force while real estate contributes more than 5 percent to GDP and hires 17 percent of the labour force directly or indirectly.

Jose Braganza, Joint MD, B&F Ventures

This is the third repo rate cut announced by the RBI and we welcome this move. Low inflation and subdued growth are the drivers of the move. Such steps play a crucial role in consonance with reducing the rates of home loan and ease the liquidity crunch in the sector. As developers, we hope and urge the banks to pass on the benefits to the homebuyers. As the stance has changed from Neutral to Accommodative, it will lead to the ease of buying a new or a second home for customers.

Mandar Agashe, Founder and Vice President, Sarvatra Technologies

With the waiver of charges on payment modes like RTGS and NEFT, RBI is clearly nudging the banks towards increasing digital payments. This move will specially benefit the small traders who deal in small value transactions and operates on small margins and for whom every penny counts. So this is actually a great move for the masses and will go a long way in encouraging digitization of payments and enhancing financial inclusion. Moreover RTGS and NEFT are much cheaper modes than other payment mechanisms like cheques in terms of the cost involved in managing end to end transactions until settlement. This move will therefore benefit banks and the entire ecosystem by encouraging more volumes.

Manju Yagnik, Vice Chairperson, Nahar Group 

The year 2019 has brought in the required intervention and announcements that is expected to bring in the required equilibrium from demand-supply mechanism and price functionality in the home market in India. The astounding win of the NDA government has strengthened the market hopes in India. The considerable increase in the Nifty figures from 11,100 to 12,100 within the period of just two weeks is a clear sign of strong market revival considering both long term and short term effects. As the monetary policy committee today announces a cut down on the interest rates by 25 basis points, this movement has set in motion the ever awaited change in the real estate sector.

Raman Kumar, Chairman and Founder of CASHe

The interest rates are amongst the highest in the emerging economies. The reduction in repo rate by 25 bps will directly bring down the rate of EMI which means consumers can now avail home, auto and other loans at much cheaper rates. This will encourage lending and credit thereby boosting the overall economic growth. This is the third straight interest-rate cut which will largely ease liquidity and nurture the investment cycle. This will also revitalize consumption, enhance demand and exports besides resolving the ongoing liquidity issues in the financial secto.

Kunal Shah, CFA, Fund Manager - Debt, Kotak Mahindra Life Insurance Co

MPC members decided to cut rates by 25bps as expected by market participants and surprisingly there was a unanimous vote to change the stance to accommodative. The shift of entire MPC surprised the market positively and yields on government bonds dropped to 6.90 percent from 7.00 percent. MPC has revised down its inflation projection to 3.45 percent from 3.60 percent for FY 2019 and on GDP growth to 7 percent from 7.2 percent in the previous policy. With the level of inflation projections and accommodative stance, we see the definite possibility of one more cut with chances of another if the monsoon is normal and crude oil prices are below $70. T

Rajan Bandelkar, President, NAREDCO Maharashtra 

“The third consecutive 25 basis point cut by the RBI is highly appreciated by the real estate fraternity as well as the home buyers. The previous rate cuts by RBI has not emanated into the transfer of benefits on the expected lines by the financial institutions. RBI has changed its stance from ‘Neutral’ to ‘Accommodative’ which also possibly provide banks the required contextual setting and cushioning to provide funds to NBFCs and thereby, have capital influx in the entire financial system, arresting the liquidity crunch. A good monsoon will lay the context for further rate cuts during the year. The recently revised GST rates coupled with 5.75 percent and stable government look potentially rewarding with a promising future for home sales in the coming second half of the year.

Ashok Mohanani, Chairman, EKTA World

For the third time in a row, the RBI cuts the repo rate cut by 25 basis points. It will definitely spur growth for the real estate sector specifically. The decision changes the stance of monetary policy from neutral to accommodative and to cut the policy repo rate brings it below 6 percent is the first time since September 2010. There have been many meaningful interventions by the government and regulator which has provided a positive boost to the buying sentiment among the home buyers. Rate cuts will ensure affordability in terms of home loans and thus lowered EMI, lower GST, tax rebate for income up to Rs 6.5 lakhs for the middle class as per as interim budget. All these shall give some sales impetus to real estate.

Rohit Poddar, Managing Director, Poddar Housing and Development Ltd

The reduction in the repo rate is essentially driven by the broad-based deceleration in the economy in recent months. This shows the commitment of the RBI to ensure the transmission of rate cuts to the end consumers. Slashing down the rates by 25 Bps along with a changed stance will create a positive ecosystem and stimulate the growth dynamics and investment cycle in the real estate sector. It will consolidate the buying sentiments with lower EMI. There is a slight reform in liquidity issues in the sector after two back to back rate reductions, and a cut-down for the straight third time will definitely undertake the liquidity shortfall in the sector at large. We expect more such actions by RBI on the liquidity front.

Shishir Baijal, Chairman & Managing Director, Knight Frank India

The first rate cut in the newly elected government’s regime is certainly a welcome step, especially for the real estate sector.  The benefit of lower policy rate in terms of better credit cost as well as higher liquidity will hopefully be transmitted further by banks to NBFCs as well as home buyers. Also, the change in policy stance from neutral to accommodative is a welcome shift as it lays the ground for further rate cuts. The cash-crunched NBFCs will definitely benefit from inflow of capital which will, in turn, benefit developers as well as home-buyers. NBFCs have been facing a liquidity crisis and this has negatively impacted their loans to real estate, including construction finance. Besides capital infusion into this important financier segment, this rate cut will also improve the home-buyers affordability and stimulate housing demand at this critical juncture.

K Srinivas, Director, CATMi

CATMi has been, over the last two years, highlighting how inadequate Interchange is hampering the deployment of ATMs in semi-urban and rural areas. With increasing adoption of DBT as the preferred and optimal method of distributing subsidies to the rural poor, the inadequate ATM infrastructure in semi urban and rural areas started to show up as a major bottleneck. The recent report submitted by CDDP, a committee chaired under the Chairmanship of Nandan Nilekani as well as the bench-marking report published by RBI also highlight this issue of inadequate ATM infrastructure in SURU areas. CATMi is pleased that RBI recognised the issues highlighted by the industry and has decided to set up a committee to comprehensively look at ATM costs and charges.

Gaurav Chopra, Founder & CEO, IndiaLends

The RBI’s decision to reduce repo rate by 25 basis points to 5.75 percent, augurs well with the retail lending sector. Amidst global uncertainty, subdued domestic industrial activity & CPI within RBI’s comfort zone of 4% within a band of + or – 2 percent, this anticipated reduction is a welcome move. This rate cut will cause a rise in the overall investment demand and improve credit environment of the economy. The reduction will give an extra room for the retail loans to become cheaper as this will cause the current cost for lenders to go down along with a possible chance of tenure reduction for old customers. If the eventual lending rates get lower, we can expect a slight motivation from end consumers to borrow more.

Vijay Mansukhani, MD, Mirc Electronics (Onida)

We welcome this move of 25 bps rate cut. Rate cut of 50 bps would have been better considering the current liquidity and low consumer sentiment in the market. Moving from neutral to accommodative status is encouraging step from RBI. We hope the economy will grow at better rates in Q2 FY20. The low consumer demand in Q4 FY19 coupled  with low GDP has had a negative impact on the companies earnings, we are hoping for better times during the Q2 FY19 onwards.

Vinod Ramnani, Director, Opto Circuits India

RBI rate cut is on the expected lines. With its 'accommodative' stance, we expect the RBI to remain supportive, maintaining liquidity at a slight surplus over the next few months. This liquidity will boost private spending across Industries.  Private spending by corporates coupled with Government spending and consumption will drive the economy. Amid slowing economic growth and rising global uncertainty, this is a welcome move in our business”

MadhuSudhan Bhageria, Chairman and Managing Director, Filatex India

RBI rate cut comes at a time when India’s Q4FY19 GDP growth rate reduced to 5.8 percent, a five year low under the Modi government. Even though inflation has remained very much under control, the liquidity had been in deficit mode for the past few months. With its 'accommodative' stance, the RBI has signaled higher chances of more cuts in the coming months if inflation persisted within tolerable limits. This is a positive move for us as this will bolster liquidity and boost private spending across industries. The government has obliquely hinted that at even lower interest rates, the focus appears to have shifted more towards engineering a quick turnaround in the broader economy by boosting consumption and investment, which is the need of the hour.

Sunu Mathew, Managing Director, LEAP India

The RBI’s move to cut the rate should instil consumer confidence, which would in turn spur the growth in Beverages, FMCG, Retail and automobile industry. This also signals that lower interest rate regime as commodities rates are subdued across the world. This is positive news for corporates to tap the expected demand in Q2 FY20. With stable Government at centre, normal monsoon coupled with low interest rate regime and RBI’s initiatives to increase the liquidity, we hope that RBI’s target growth rate of 7 percent in Q2 FY 20 would come true.

Vinay Bagri, Co-founder & CEO, NiYO

The RBI's decision to accept small finance bank applications on-tap is a much anticipated and welcome move as the current SFBs have been doing a commendable job on achieving the goal of financial inclusion. As a financial inclusion platform for the blue collared workforce in the country, NiYO wholeheartedly welcomes the move. RBI should also look at a new category of license for new age digital banks or ‘Neo-Banks’, which operate as a differentiated banking platform solving a particular part of the financial inclusion problem in a robust and efficient manner.

Garapathi Radhakrishna, CMD, RKEC Projects

The rate cut of 25 bps is not enough to spur the growth of economy. We were expecting 50 bps  for overall easing of liquidity in the system and for instilling confidence among consumers. It is also essential that the impact of the cut should be passed on to the Consumer in a free market regime. The new Government’s reforms, low interest rate regime coupled with announcement of huge investments in infrastructure from the Government of India should lift the economy to better Growth rates during the current year.

Kewalchand P Jain, CMD, Kewal Kiran Clothing

The RBI’s rate cut should instill Banks to pass on the interest savings to consumers, which should in turn spur the growth for retail and FMCG sectors at large. Normal monsoons coupled with low interest rate regime should increase the demand at rural level which was missing last year. Overall, the economy should continue its momentum. Having said that, the rate cut would have been sharp to encourage private investment to spur the overall growth of the economy.

Udaya Kumar Hebbar, Managing Director and CEO of CreditAccess Grameen Koota

We welcome RBI’s decision to cut the repo rate by 25 bps, which is in the expected lines. The measures introduced will be a stimulus for improving investment and will boost capex, supported by conducive inflation environment. We expect the economic expansion to bolster starting this quarter as liquidity will improve and credit off-take will improve its pace.

Ananth Narayan, Associate Professor, Finance at SPJIMR

Given slowing domestic and global growth, the Monetary Policy Committee (MPC) unanimously delivered a 0.25 percent rate cut with an accommodative stance. Notably, the governor announced a review of the liquidity framework, and durable surplus liquidity should aid in monetary transmission. On concerns around some NBFCs, Governor Das did a mini-Draghi, and promised to “do what it takes” to maintain financial stability. The onus in now on economic reforms and the budget to complement today’s MPC statement, and revive the economy.

R K Gurumurthy-Head Treasury, Lakshmi Vilas Bank

The RBI cut repo rate for the third time in a row, along with a change in stance to being “accommodative” from “neutral’. The decision was achieved with an overwhelming 6-0 majority, a first of its kind. More pertinent to the economy is that the policy lays ground for further policy softening. Inflation estimates have been lowered and so are the GDP estimates. Besides moving to an accommodative liquidity stance, the Governor also reiterated in the presscon that RBI will ‘ensure adequate liquidity in the system”. It could imply we may see more measures in the coming days that help achieve faster and sizeable rate transmission – a pass through of 75 basis of the three rate cuts should happen in the coming months, currently only about 21 basis is perceived to have been transmitted. This may also imply that deposit rates may start falling sharply in the coming days.

Deo Shankar Tripathi, MD and CEO, Aadhar Housing Finance

Concerned with the weakening growth, the RBI has taken a very appropriate step by changing the stance from neutral to accommodative which means no risk of rate hike in subsequent months. This will be a big support to improve the demand as well as to revive the private sector investment. The RBI has also reassured the market for required support to strong NBFCs and HFCs. For liquidity concerns, RBI has set up task force which is a very timely decision and once the liquidity in the system normalizes, I think all the sectors will get the boost. The Reduction in repo rate by 25bps will also boost overall sentiments and also some reduction in EMI of loans.

L Vishwanathan, Partner, Cyril Amarchand Mangaldas

With inflation stable, the rate reduction is a welcome monetary stimulus. If transmitted effectively it could improve credit off-take and bolster economic growth. The proposals on regulatory changes demonstrate RBI's promptness in dealing with market realities. Setting up a Working Group to evaluate the regulatory and supervisory guidelines for CIC's is welcome and will improve confidence for CICs to raise funding for their corporate vehicles with more evolved regulation and stronger governance. Granting on-tap licenses to Small Finance Banks will foster financial inclusion further and will enable well-functioning microfinance companies to provide a fuller suite of financial services to low income households.

Kewalchand P Jain, Chairman and Managing Director, Kewal Kiran Clothing

The RBI’s rate cut should instill Banks to pass on the interest savings to consumers, which should in turn spur the growth for retail and FMCG sectors at large. Normal monsoons coupled with low interest rate regime should increase the demand at rural level which was missing last year. Overall, the economy should continue its momentum. Having said that, the rate cut would have been sharp to encourage private investment to spur the overall growth of the economy.

Raghvendra Nath, Managing Director, Ladderup Wealth Management

On expected lines, the RBI has cut interest rates by 25 bps in its Monetary Policy Statement. This is the third consecutive rate cut by the central bank. We expected a 50 bps cut considering that there is a significant drop in consumption which reflected in the lower GDP numbers reported recently. Also the private investment is yet to kick start in any significant manner and a favorable monetary policy may provide the right incentives to the businesses to start planning capital investments.

Avnish Jain, Head Fixed Income, Canara Robeco Mutual Fund

Consistent with market expectations, the monetary policy committee (MPC) reduced repo rate by 25 bps and further changing stance to “accommodative” from “neutral”. The decision was unanimous with the Committee voting 6-0 in favour of rate cut as well as change in policy stance. The MPC noted that global economic activity is losing pace and there is slowdown both in advanced as well emerging economies. Crude oil remains volatile and the financial markets are driven by uncertainty surrounding US-China trade negotiations and Brexit. Further domestic economic activity has taken a beating with sharp slowdown in GDP to 5.8 percent in Q4:2018-19.

Ankush Tyagi, CEO, T&T Group

With the current rate cut, RBI so far has reduced a total of 75 bps for the third consecutive time, this year. The repo rate now stands at 5.75% and expectations are high that banks will pass on the rate cut by lowering their lending rates and in turn possibly lowering the equated monthly instalments (EMI) that individuals pay on home and consumer loans. We, at T&T expect a rise in the demand for houses with loans being more accessible and cheaper and this would definitely lead to boom in the sector with high demand, incentivising higher supply, thus, growth of the economy.

Saurabh Vohara, Business Head, NoBroker

Revision of repo rate by 25bps for the third time in the consecutive year is an encouraging move for the real estate sector and shows a softer stand towards lending. The rate cut and moderation in the coverage ratio with recent instances of liquidity injections indicate that the RBI is ready to take more risks. The revision in the key policy rate would not only benefit the developers, but will also be in favor of homebuyers as it will lead to lowering the EMI burden, this will in turn lead to boosting affordable and mid segment housing sales.

Samyak Jain, Director, Siddha Group

The RBI’s decision to reduce the repo rate has paved the way for the improvement of the Indian Economy. The third consecutive rate cut this year is expected to provide the desired impetus to the residential segment of the realty sector through low-cost home loans. We hope that banks pass on the benefit to homebuyers and also expect this initiative to boost credit growth and revive the inactive nature of the economy.