MSMEs seek clarity about interest subvention scheme

L N Revathy Coimbatore | Updated on October 29, 2020

Notwithstanding the Government’s announcement and the RBI guidelines on implementation of the 2 per cent interest subvention scheme, the MSMEs in this region aver that not a single beneficiary has been in receipt of the interest subvention amount till date.

“We are however given to understand that SIDBI (the nodal agency) has disbursed Rs 825 crore under this scheme across the country,” said M Raveendran, President, Coimbatore Compressor Industries Association.

Stating that it is the duty of the concerned bankers to claim the 2 per cent interest subvention amount through SIDBI once every six months and disburse the same to the MSMEs, the CCIA president said: “Despite sensitisation and instructions from the RBI on the scheme, we’ve not seen much progress. The amount would go a long way in easing liquidity, in bailing us from the cash starved situation that we are now in.”

The association has appealed to the Reserve Bank of India (RBI) to allow the MSMEs to apply directly in a prescribed format, for submission to SIDBI by the bankers after verification. “This would not only speeden the process but also enable faster settlement,” he said.

The association has also sought clarification on “fresh loans”, as bankers had not clarity on the same. “The overdraft facility is subjected to renewal by the banks. We would request for considering the overdraft as fresh loan,” the association said in its appeal to the RBI

Published on October 29, 2020

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