The newly appointed President of industry body Assocham Rana Kapoor said on Friday, under the current circumstances, any reduction in rate cut during RBI’s forthcoming monetary policy looks impossible.

“Rate reduction in the monetary policy seems impossible. Status quo itself will be a big decision,” he said.

Mr. Kapoor, who is also the Managing Director & CEO of YES BANK, said bringing stability in the exchange rate of rupee is the critical issue and a stable exchange rate can bring the investor confidence back into the Indian economy.

To boost investments in the country, he said Assocham would work with the government to push the PSUs, which are sitting on huge cash piles, to invest their surpluses.

"The government should utilise the cash surplus of PSUs to boost investment. The surplus funds, which can be invested for capex, are estimated at Rs 2.8 lakh crore. Assocham would also work with the government on enhancing investment in urban infrastructure to sustain growth," he said.

On new bank licenses, Mr. Kapoor said there is definitely a need for more banking services in the country, either from existing players or from new entrants.

Further, he said for takeoff of the big ticket projects, it is important to have a CCI (Cabinet Committee on Investment) type mechanism at the state levels as well.

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