Business Mantra News
- The Finance Ministry has asked Public Sector Banks to explore plans and special packages for strained Micro, Small and Medium Enterprises (MSMEs) and Small & Medium Enterprises (SMEs).
- The Government is aiming to allow easy access of finance and market to MSMEs as they generate huge employments in the country and also contribute to 40% of India’s manufacturing.
- The Finance Ministry has asked to PSBs to reshuffle loans to bailout for genuine business by MSMEs rather than wrong doing to MSMEs. Banks are also asked to have sympathetic view and create special cells to expedite disposal of their cases of MSMEs.
- The Banks are also advised to provide liberal credit facilities to strengthen troubled SMEs due to external factors. SBI has already taken initiative by establishing rehabilitation unit for stress SMEs.
- One of the reason of this favour for MSMEs and SMEs is that they are creating jobs which lead to growth of the economy but they are not getting any financial support from international or the bond market.
- The Government is seeking to bring many new projects in the MSMEs and revamp the “Udyamitra” portal to get easy access to finance regime.
The finance Ministry has asked PSBs to open intensive Branches of MSMEs to increase availability of finance.