Home / Knowledge / News / To deal with global meltdown CII suggests five point agenda
To deal with global meltdown CII suggests five point agenda
17
Nov '08
For dealing with the impact of global financial crisis, Confederation of Indian Industry (CII) has come out with a new five point agenda.

Current Issues:
•Domestic liquidity shortage
•Exchange rate volatility and Steep depreciation of the Rupee
•Inadequate credit availability and slowdown in demand
•High Interest rates
•Decline in business and investor confidence and optimism

Steps taken by RBI, Government & SEBI:
•Repo Rate cut by 1.5%, CRR cut by 3.5%
•Interest rate ceiling on FCNR(B) and NRE deposits increased by 50 basis points.
•SLR cut by 1%
•Public sector oil marketing companies and bulk purchasers to access foreign exchange directly from RBI
•Rs 25,000 Crore under Agricultural Debt Waiver and Debt Relief Scheme to Banking system.
•Banks allowed to borrow funds from their overseas branches & correspondent banks up to a limit of 50% from 25% of their unimpaired Tier I capital or upto USD 10 million.
•ECB norms relaxed upto US$ 500 Mn for all sectors.
•Loans to mutual funds against and buy back of Certificates of Deposits (CDs) upto 20 Oct. 2008.
•Consolidation through creeping acquisition upto 5% allowed to persons holding 55% to 75% through buyback route with automatic exemption by SEBI.
•Special liquidity window for MFs and NBFCs.
•Special refinance facility for 90 days at the repo rate extended to banks.
•Buy back of MSS securities (details awaited)

CII Suggestions accepted:
CII thanks RBI, Ministry of Finance and SEBI for accepting its recommendation on:
•Cutting CRR
•Cutting Repo Rate
•Providing direct access to OMCs and bulk buyers for their forex requirements.
•Liquidity window to Mutual Funds & NBFCs
•ECBs limits relaxation for all sectors
•Consolidation through Promoters buy back

CII Recommendations: What more needs to be done?
1.Communication & Confidence
a.Comprehensive communication exercise by Government and regulators in consultation with industry to articulate the approach to mitigate risks arising out of the global financial crisis and strengthen confidence in the economy. Guarantee for all bank deposits for a two-year period, to maintain depositor confidence in the banking sector.

2.Domestic liquidity and interest rates
b.Further reduction in repo rate by at least 150 bps and in CRR by 250 bps to regulatory floor level of 3% to ensure adequate liquidity and reasonable cost of funding. RBI could also consider further reduction in SLR by 2% and allowing Oil and Fertilizer bonds acceptable for SLR. The reverse repo rate also could be cut by 50 bps, since the RBI has started borrowing from some banks.
c.Provision of special line of liquidity directly form the RBI to Mutual Fund and NBFC sectors, to enable orderly operation of financial markets.

3.Foreign exchange management
d.Faclitate greater foreign exchange inflows by ;


Must ReadView All

Courtesy: Kai Pilger from Pexels

Apparel/Garments | On 26th Apr 2018

FOBAP in the Philippines trying for garments sector revival

The Foreign Buyers Association of the Philippines (FOBAP), a body...

German investors keen to invest in Pakistan: top official

Textiles | On 26th Apr 2018

German investors keen to invest in Pakistan: top official

A German traders delegation will soon visit Pakistan to explore...

Courtesy: Uster

Textiles | On 26th Apr 2018

Uster Technologies acquires Elbit Vision Systems

Uster Technologies has announced the successful closure of the...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search