P D Singh, CEO, India & South Asia, Standard Chartered Bank, said, “The MPC announcement on a scheme to attract 3–5-year retail foreign currency term deposits should be a game changer as this would help attract FCY flows into the country while allowing Banks to bolster their deposit growth and meet client funding requirements. Other measures announced such as relaxations in FPI investments in government securities along with the government measures on taxation and the facility to incentivise external borrowings by public sector entities would further help in the same.
The MPC decision to maintain status quo on policy rates comes from a prudent stance by the regulator as it would like to wait and watch how the evolving West Asia scenario plays out in the coming time and whether a long-term impact on India macro is likely.”
