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Our Bureau

Hyderabad , July 29

THE Small Scale Industry (SSI) sector has been seriously impacted by the moratorium placed on Global Trust Bank (GTB), especially those holding current accounts without any other facilities. Hence, the Reserve Bank of India should consider relaxation for these units, the Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) has said today.

The Chambers President, Mr O.P. Goenka said the Oriental Bank of Commerce which is acquiring the GTB may be immediately asked to open shadow or parallel accounts and allow all operations to help the SSIs.

With the freeze on accounts following the moratorium, the SSIs will have difficulty in payment of salaries, which they have to make on 7th of every month. In addition, payment of electricity bills, sales tax, minimum raw material and expenses have to be completed by 15th of the month. As most of the units do not have dealing with some other bank, they would land in crisis, he said in a press release.

Several SSIs have approached the FAPCCI and indicated that they do not mind if instructions were issued for direct payment by way of DDs, Bankers cheques to employees, Electricity Boards and sales tax department etc.

The online banking facility provided by GTB with a network all over the State had made most of these units put their entire transactions only through the bank. They will find it difficult to financially withstand the moratorium, the release said.

Varsity name change: A Bill seeking to change the name of Nagarjuna University to Acharya Nagarjuna University was adopted by the State Assembly on Thursday.

The Executive Council of the University had resolved to change the name as it is located at the birthplace of Acharya Nagarjuna. The Government accepted the council's resolution and issued an ordinance changing the name. The Bill will replace the Ordinance.

More Stories on : SSI | Private Banks | Industry Associations | Andhra Pradesh

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