1. Home >
  2. Export Import News >
  3. Economy News >
  4. RBI director Marathe presses for bold initiatives to revive MSME sector, amid COVID-19 crisis >
  5. RBI director Marathe presses for bold initiatives to revive MSME sector, amid COVID-19 crisis

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

RBI director Marathe presses for bold initiatives to revive MSME sector, amid COVID-19 crisis.

Date: 03-04-2020
Subject: RBI director Marathe presses for bold initiatives to revive MSME sector, amid COVID-19 crisis
The government and the Reserve Bank need to come out with a bold and comprehensive package to help small and medium enterprises tide over the unprecedented crisis created by COVID-19, said veteran co-operator and RBI central board director Satish Marathe. Piecemeal initiatives will not help the industry as “this is an exceptional crisis and warrants exceptional response,” Marathe told PTI.

The coronavirus crisis is likely to end in the next three to six months, but the industry, which bore the brunt of slowdown during 2019, will take much longer to recover, he said.

Referring to the recent measures announced by the government and the RBI to mitigate the impact of the pandemic, he said, these are only for short term and may not yield the desired results as the problem is severe and has been further aggravated by the lockdown.

There is a need for a bold and comprehensive package to ensure that the industry, especially unorganised sector and MSMEs, comes back on track as quickly as possible once coronavirus is contained and the lockdown is lifted, said Marathe, who is also the founder member of Sahakar Bharati.

In a letter written to Finance Minister Nirmala Sitharaman, Sahakar Bharati said announcements made by the government and the central bank would make little impact both on the borrowers and lenders.

There is a need to relax bad loan guidelines for classification of non-performing assets (NPA), it said, adding the delinquency period should be raised from 90 days to 180 days.

In India, Marathe said, a business is run with support from bank credit unlike in developed economies where it is propelled by capital.  ' He also suggested that provisioning norms be kept in abeyance for 1 year and rescheduling be allowed in all personal and retail loans without downgrade.

Even the steps like three-month moratorium on EMI payments offered by banks to borrowers hit by COVID-19 lockdown are not providing any income protection as they will have to bear the extra cost of interest charged by lenders and a longer repayment period.

Bankers say it is an expensive proposition for any borrower to opt for three-month suspension as announced by the RBI.

Last Friday, the RBI announced that all term loans, including retail and crop loans and working capital payments, will be covered by the three-month moratorium.

The RBI notification had said "the repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period".

The instalments included payments falling due from March 1 to May 31 such as the principal and/or interest components; bullet repayments; equated monthly instalments; and credit card dues.

Term loans and working capital facilities include all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India financial institutions, and NBFCs (including housing finance companies). All these are permitted to grant a moratorium of three months on payment.

In respect of working capital facilities sanctioned in the form of cash credit/overdraft, lenders are permitted to defer the recovery of interest applied in respect of all such facilities during the deferment period.

"But the accumulated accrued interest shall be recovered immediately after the completion of this period," the RBI had said.

Source:- moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 01-06-2020
Notification No. 08/2015-2020-DGFT
Amendment in Export Policy of Alcohol based Hand Sanitizers

Date: 01-06-2020
Public Notice No. 07/2015-2020
Amendments in the Appendix 3B, Table 2 of the Merchandise Exports from India Scheme (MEIS)

Date: 01-06-2020
Public Notice No. 09/2015-2020
Amendments in the Appendix 3B, Table 2 of the Merchandise Exports from India Scheme (MEIS)

Date: 01-06-2020
Trade Notice No. 13/2020-21-DGFT
Implementation of MoU between India and Mozambique for import of pigeon peas and other pulses grown in Mozambique during 2020-21

Date: 01-06-2020
Instruction No. 08/2020-Customs
24x7 Customs Clearance at all the Customs Stations - reg

Date: 29-05-2020
Circular No. 26/2020-Customs
Review of Circular No. 17/2020 dated 03.04.2020 namely, 'Measures to facilitate trade during the lockdown period- section 143 AA of the Customs Act, 1962'

Date: 29-05-2020
Notification No. 48/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg.

Date: 28-05-2020
Notification No. 07/2015-2020
Amendment in Export Policy of Paracetamol API

Date: 28-05-2020
Instruction No. 7/2020- Customs
Special drive for disposal of applications for fixation of Brand Rate of Duty Drawback.

Date: 27-05-2020
Notification No. 9/2020-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of 'Electronic Calculators of all types excluding calculators with attached printers, commonly referred to as printing calculators; calculators with ability to plot charts and graphs, commonly referred to as graphing calculators; programmable calculators',originating in, or exported from, People's Republic of China for a period of five years, in pursuance of final findings of sunset review investigations issued by DGTR and in supersession of the notification No. 24/2015- Customs (ADD), dated the 29th May, 2015.

Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001