RBI EC on J&K MSMEs meets in Jammu; Rahul Sahai represents PHDCCI, J&K

Jammu, March 13: The Reserve Bank of India (RBI) Empowered Committee (EC) on J&K MSMEs met in Jammu to discuss various issues related to MSME sector in J&K. Rahul Sahai Chairman, PHDCCI – Jammu represented PHDCCI -J&K in the meeting.

During the meeting, Mr Sahai raised and discussed the following issues with the RBI Director:

▪️the problem of mortgage deed rate @ 1.25 % charged on the valuation of the property instead of loan amount.

▪️TREDS scheme in which banks are bidding on a higher side because of that people are not opting for TREDS, banks are bidding upto 10% but margins are not that much.

▪️Real disbursement of loans are not happening, loans are offered to those who are already comfortable in balance sheets, but this time stressed accounts need a hand holding and also the issue of blocking the enterprises for 3 years after opting for OTS.

▪️the position of businesses from 5th Aug 2019: the team discussed how businesses got stressed due to lockdown of 5th Aug and then further with corona lockdown and relief measures were asked for norms from Aug, 2019.

▪️ Awareness programs of Govt of India schemes and Financial Inclusion Schemes in collaboration withPHDCCI was suggested.

▪️Sensitized RD about opening of SME branches in all the industrial estates.

▪️ Financing of cluster industries like bat manufacturing, hotels, handicrafts etc.

▪️ The availing of CGSSD and lock down has affected the CIBIL scores, and credit ratings which needs to be relaxed for further credit flow to MSMEs.

▪️ The revival and rehabilitation of Sick MSMEs and inclusion of all NBFC in J&K to have an option of lending to MSME was discussed in detail.