SME Times News Bureau | 04 Jan, 2019
Industry body FICCI has welcomed RBI's move
to provide a loan-restructuring window for MSMEs with loans up
to Rs 25 crore.
"This will provide a much-needed boost to the small and
medium enterprises that had been reeling under financial pressures on account
of reasons beyond their control," said Sandip Somany, President,
MSMEs are the backbone of the Indian industry, but generally
face greater vulnerability on account of the payment mechanisms which came
under greater stress in recent times.
The tight liquidity situation in the financial markets only
exacerbated the problems faced by the MSMEs and a measure like the one
announced by RBI was clearly needed to support these units, it added.
"The relief comes at the right juncture and will provide
the much-needed momentum to push the growth levers as MSMEs make a significant
contribution to domestic output, exports as well as job creation," said Somany.
He added, "The RBI scheme should provide an
incentive to the lenders to look at restructuring of the loans extended to
MSMEs in a more pragmatic manner and we hope that it will also expedite
decision making in this regard".
RBI's relief window for MSMEs together with other measures
announced by the government for easier and affordable access to credit such as
interest subsidy on loans should help in reviving growth of MSMEs and provide
an added impetus to push the overall growth of the economy upwards of 8 per