SMEs unhappy with RBI's decision to unchange interest rates: ASSOCHAM

NEW DELHI: Majority of industries about 93% in SME sector feel that the Reserve Bank of India’s (RBI) decision to not revising the interest rate has been unjustified, said a poll by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The industry body conducted interview of nearly 100 small and medium enterprises (SMEs) across teh country in the past fortnight to find out their views on RBI’s decision of not to bring revision in the interest rates during its mid-quarter monetary policy review on June 18.

Apart from this, close to 86% of the respondents stated that high interest rates is impacting the business of SMEs since their organisations are reeling under pressure of climbing lending rates. The survey has been conducted by the ASSOCHAM Research Bureau (ARB).

DS Rawat, Secretary General of ASSOCHAM, said, “The SME sector had already been grappling with macro-economic slowdown together with global uncertainty and rising interest rates put an extra burden on these small capital organizations which are heavily dependent upon the banks for their finance requirements.”