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Lower interest rates must reach consumers in one day: M&M's Pawan Goenka

Updated : August 30, 2019 07:16 PM IST

Mahindra & Mahindra (M&M) Ltd, one of India's top utility vehicle and tractor makers, on Friday said lower interest rates must reach end consumers within a day or two, not 10-15 days.

In an interview to CNBC-TV18, Pawan Goenka, managing director, said, "The deficit of interest rate passing to the consumer is close to 75-100 basis points. With some arm-twisting and cajoling, if the RBI is able to convince the major banks and financial institutions to perhaps go even beyond the repo rate cut and if we get 100 basis point reduction over 3 to 5 days, then that would be substantial."

"We welcome the government's initiative to kickstart the economy. However, how much of a difference it will make to the consumer will be known by the end of the month when the sales numbers are out," he said.

According to him, "Since the government announcements come a week to ten days before Navaratri, it gives time for people to rethink about their purchases that they may have postponed. The expectation is that consumers sitting on the fence may make the purchases."
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