Coimbatore : The Indian Chamber of Commerce and Industry Coimbatore (ICCIC) has lauded the Governor, Reserve Bank of India for releasing guidelines on restructuring of advances to MSMEs, which contributes 50 percent to the manufacturing sector.
Coimbatore : The Indian Chamber of Commerce and Industry Coimbatore (ICCIC) has lauded the Governor, Reserve Bank of India for releasing guidelines on restructuring of advances to MSMEs, which contributes 50 percent to the manufacturing sector.
V. Lakshiminarayanasamy, President of ICCIC has said in his press communique, “We appreciate that understanding the structural bottlenecks and factors' affecting the performance of the MSMEs, the RBI has taken this decision. We are happy that the Government of India and RBI have considered the importance of the MSMEs in the Indian Economy".
The statement also added "We also note that RBI has decided to permit a one-time restructuring of existing loans not exceeding Rs.25 crores to MSMEs that are in default but 'standard' as on January 1, 2019 without an asset classification downgrade. This will be a big relief to financially stressed MSMEs.”
“The MSMEs exporting sectors which were affected due to demonetization and implementation of GST would be benefitted by the RBI's move. A provision of 5% in addition to the provisions already held, shall be made in respect of accounts restructured under this scheme is also a welcome move”, ICCIC President, V. Lakshiminarayanasamy noted.
“On behalf of trade, industry and MSMEs of this region, we welcome the move of the Government/RBI for creating continuous atmosphere for the development of industries", the statement said.
V. Lakshiminarayanasamy, President of ICCIC has said in his press communique, “We appreciate that understanding the structural bottlenecks and factors' affecting the performance of the MSMEs, the RBI has taken this decision. We are happy that the Government of India and RBI have considered the importance of the MSMEs in the Indian Economy".
The statement also added "We also note that RBI has decided to permit a one-time restructuring of existing loans not exceeding Rs.25 crores to MSMEs that are in default but 'standard' as on January 1, 2019 without an asset classification downgrade. This will be a big relief to financially stressed MSMEs.”
“The MSMEs exporting sectors which were affected due to demonetization and implementation of GST would be benefitted by the RBI's move. A provision of 5% in addition to the provisions already held, shall be made in respect of accounts restructured under this scheme is also a welcome move”, ICCIC President, V. Lakshiminarayanasamy noted.
“On behalf of trade, industry and MSMEs of this region, we welcome the move of the Government/RBI for creating continuous atmosphere for the development of industries", the statement said.