The government and RBI efforts to improve the liquidity situation has started yielding results, but more measures are required to make available adequate liquidity in the system and strengthen the financial sector for supporting the economic recovery and attaining 8% plus GDP growth rate, according to the FICCI.

FICCI economic cell has been deliberating on this with the government and industry so that steps could be taken to better the liquidity situation and further strengthen the financial sector. While a 21-point suggestion has been submitted to the government and RBI to tackle the NBFC liquidity problem, the chamber also took part in the FSDC deliberations on the issue.

The tight liquidity situation in the festive season and rising interest rates will impact the SMEs, MFIs and sectors like housing. The SME credit issue is the most crucial one and all measures should be explored to address this. FICCI being a federation, has many regional chambers as its members, who represent SME sector and they have been asking for cheaper and easier availability of credit.