CAIT demands restoration of MSME status for 8 crore traders
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Last Updated: Mar 14, 2021, 10:46 AM IST
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The government in June 2017 removed retail and wholesale traders from the MSME category forcing the players either borrow at a higher rate or from informal financial sources, CAIT Secretary General Praveen Khandelwal said.
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In absence of supportive policies, a large chunk of business is out of formal system, Khandelwal said, adding, it is right time for the government to take decision in this regard.
NEW DELHI: The Confederation of All India Traders (CAIT) has demanded restoration of MSME status taken away in 2017 from 8 crore retail and wholesale traders who are part of the service industry.
The Confederation of All India Traders (CAIT) has demanded restoration of MSME status taken away in 2017 from 8 crore retail and wholesale traders who are part of the service industry. The government in June 2017 removed retail and wholesale traders from the MSME category forcing the players either borrow at a higher rate or from informal financial sources, CAIT Secretary General Praveen Khandelwal told PTI. According to banking sources, about Rs 3 lakh crore loans given to them are at the risk of losing a tag of MSMEloan at the end of March when banks do their annual closure. As a result, many banks will face the problem of meeting priority sector lending (PSL) target and the shortfall may have to be parked with Small Industries Development Bank of India (SIDBI) or Micro Units Development & Refinance Agency Ltd (MUDRA).
The government has announced several measures under Aatmanirbhar Bharat package to increase availability of credit to the MSME sector, added MSME Minister Nitin Gadkari
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