COSIA gives memorandum on MSME issues to FIDD-RBI
   Date :19-Feb-2020

COSIA gives memorandum _1
Business Bureau :
THE Chamber of Small Industry Associations, Vidarbha (COSIA) submitted a memorandum high￾lighting certain important finan￾cial issues relating to MSME in anticipation of an appropriate action to ease out the financial problems to the officials of FIDD - Reserve Bank of India (RBI), Nagpur at a Town meeting for MSME issues organised by RBI to observe Financial Literacy week. Mayank Shukla, Chairman of COSIA Vidarbha, while addressing the issues said that sorting out of the issues will help the MSME sector in capacity building and will encourage them to carry out their activities smoothly and efficiently.
The memorandum highlight￾ed the issue regarding MSME industries needing financial sup￾port to the extent of Rs 2 crore are supposed to get them with￾out any collateral security under CGST scheme. “But surprisingly many of the banks refuse to lend financial support under this scheme and ask MSME borrow￾ers to furnish appropriate secu￾rities against lending financial loan which becomes difficult for MSMEs. Also it addressed the issue about the MSMEs industries needing ‘Bank Guarantees’ as securities during business trans￾actions are also financially sup￾ported by the bankers,” he said.
In many of the cases while deal￾ing with Government PSUs or corporate sector, when these bank guaranties expire and there is no claim against such bank guarantees, they are not returned immediately and some times there is an inordinate delay in returning the original copy of bank guarantee. As such expired bank guaran￾tees has no importance after the validity period it should be treat￾ed as ineffective and returned back on execution of Indemnity Bond furnished by the benefici￾ary MSME industry.
The memo￾randum further pointed out that Government has reduced Repo Rates gradually from 8 per cent in 2014 to 5.15 per cent till date to boost industrial growth in the country but bankers have passed on only a part of this reduction to the lenders it requested the apex bank to ensure that the reduc￾tion and Repo Rates are sub￾stantially passed on to the Industrial Borrowers. Suresh Satpute, General Manager, FIDD - RBI, Nagpur noted the issues and assured to take up the matter at appropri￾ate level. Brijeshkumar Singh, Assistant General Manager, FIDD-RBI, Umesh Bhansali, Manager, FIDD-RBI, Anupam Singh, Manager, FIDD-RBI, CA Julfesh Shah, Sunil Sirsikar, Udayan Shrouti, R K Chokhani, Nischay Shells, Punit Mahajan, CA Nitin Alshi were prominently present in the meeting.