How MSMEs are Profiting Through PSBs with Government's Action Plan
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after meeting the CEOs of Public Sector Banks (PSBs) yesterday, the Finance Minister announced that an amount of rupees INR 81,700 was granted to the business enterprises during the nine day outreach ‘loan mela’ organized by the banks that began on October 1, 2019. Another ‘Loan Mela’ will be held around 21 October this year.
Further, Finance Secretary mentioned that out of the total amount given INR 34,342 crore was disbursed to the new players in the business sphere. Banks followed the prudential norms while remunerating the loans to businesses
The Finance Secretary addressed the media to deliver the details of the meeting conducted by the Finance Ministry with the Chief Executive Officers of the PSBs. He mentioned that all Public Sector Banks are maintaining its regulatory capital levels.
Profit Measures for MSMEs
Finance Minister Nirmala Sitharaman mentioned that banks have sufficient liquidity and measures are being taken to ensure that due payments are released to MSMEs (Micro, Medium and Small Enterprises) by corporate giants.
To guarantee liquidity for independent ventures, Sitharaman said that banks have been approached to give bill discounting facility to the MSMEs against installments due from the big corporates.
Aiming the MSMEs benefits, Ministry stated that corporate affairs ministry has a complete data of the companies which agreed that they owe around 40,000 Crore to the MSMEs. Also, FM declared the tentative deadline of dues payment to MSMEs and said that measures have been taken to ensure that MSMEs get their dues ahead of Diwali this year.
MSMEs have been facing trouble related to the due payment and stressed loans since past few months. Government has taken developmental efforts to ensure the timely due payment and distressing loans from MSMEs to augment the economy. These measures announced today by the Finance Minister and the Finance Secretary would help these enterprises grow smoothly with profitable margin.