Tirupur Exporters' Association urges banks to pass on reduction of repo rate cut

Tirupur Exporters' Association (TEA) Thursday requested banks to pass on the reduction of repo rate by 25 paise to exporting units. Hailing the RBI's decision to cut the repo rate from 6.25 to six per cent in the first bi-monthly monetary policy for the year 2019 -20, TEA president Raja M Shanmugham, in a statement here, expressed hope that all banks would come forward to pass on the reduction of the interest rate to the borrowing units.

The knitwear garment exporting units, particularly the MSMEs, would benefit by this as they have been suffering due to macro-economic changes, he said in the statement. 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, the statment quoted Shanmugham as saying.

The reduction of interest would pave way for the growth of investment and exports, he added. PTI nvm NVG NVG.

(With inputs from agencies.)