“25 bps cut by the RBI is the third consecutive cut in 2019. The transmission of the previous rate cuts had been very discouraging at only 5-10 bps. As the monsoon predication is very positive, we expected RBI to take a bolder step and do 50 bps rates cut, that would have given clear signal to India Inc to push for growth and take investment decisions thereby maintaining the capex cycle.

Because of higher interest rates the consumer spending like auto sales, real estate etc. has been very weak. We urge RBI to open up funding to retail NBFCs through banks that will stimulate the consumer spending.”