New Delhi, Nov 16 (IANS) Leading industry lobby Confederation of Indian Industry (CII) Sunday welcomed the Reserve Bank of India’s (RBI) measures to ease credit in the financial system.“The CII had suggested that the interest rate cap on FCNR (foreign currency accounts) and NRE deposits be removed and the banks be allowed to decide these rates. Therefore, the raising of the interest rates by 75 basis points is very welcome,” CII president K.V. Kamath said in a statement.

The RBI Saturday announced a slew of positive measures, including permission to housing finance firms to raise funds from overseas markets and raising the interest rate ceiling on foreign currency deposits.

Kamath, who is also the head of the country’s largest private lender ICICI Bank, said the RBI’s decision to extend Rs.20 billion to Small Industries Bank of India would be a great help for the small-scale industries, which were hit badly by the credit crunch.

The apex bank has also given Rs.10 billion loan to the National Housing Bank, a move that would “help the sagging real estate sector”.