Stung by the second wave of the Covid-19 pandemic, small businesses have urged Finance Minister Nirmala Sitharaman to review classification norms for bad loans and rationalise import duty on key raw materials such as iron and steel.
The Federation of Indian Micro, Small and Medium Enterprises (FISME) in its suggestions to the finance ministry has said that “more than the requirement of additional funds, the greatest need that has emerged is the flexibility in assigning non-performing assets (NPAs)”.
The industry body has said the framework to classify accounts under Special Mention Account (SMA) framework has been devised for normal times, and should be revised for pandemic-hit years. Accounts are classified as SMA-0 if principal and interest is overdue between 1 to 30 days; SMA-1 and SMA-2 if repayment is overdue between 31 to 60 days, and 61 to 90 days, respectively.
MSMEs seek easing of NPA, compliance rules
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Last Updated: Apr 28, 2021, 11:26 AM IST
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The Federation of Indian Small and Medium Enterprises (FISME) also pitched for creation of a “war-room” to monitor prices of key raw materials used by the sector, claiming that suppliers are increasing prices in the wake of the pandemic and rationalisation of import duties.
Small Indian businesses have sought relaxation in compliances and norms governing classification of non-performance assets (NPAs).
The Federation of Indian Small and Medium Enterprises (FISME) also pitched for creation of a “war-room” to monitor prices of key raw materials used by the sector, claiming that suppliers are increasing prices in the wake of the pandemic and rationalisation of import duties.
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Now, even defaulters can borrow more
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Now, even defaulters can borrow more
TNN / Apr 17, 2021, 03:13 IST
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MUMBAI: In a move that will enable even delinquent borrowers to avail of additional bank loans, the government on Friday extended the scope of its Emergency Credit Line Guarantee Scheme to those with repayment overdues of up to 60 days.
The department of financial services said the facility would be available to 26 stressed sectors identified by a committee headed by former ICICI Bank chief K V Kamath. The list includes everything from healthcare, aviation and corporate retail outlets to power, cement, construction and textiles.
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Credit information companies (CICs) are independent, third-party organisations that collect financial data regarding loans and credit cards and share it with their members in a comprehensive manner. Individuals also can easily obtain own credit report, including credit score and history by paying certain amount to any of the four CICs in India. There are four CICs, TransUnion CIBIL Ltd (CIBIL), Experian India, Equifax Credit Information Services Pvt Ltd (Equifax), and CRIF High Mark Credit Information Services.
Financial institutes like banks, and non-banking financial companies (NBFCs) are members-subscribers of CICs. Credit information companies collect information about all borrowers from financial institutes and then convert this in a report detailing credit history of the borrower.