FISME asks RBI to defer installment payments under emergency lines of credit guarantee program
The Federation of Micro and Small and Medium Enterprises of India (FISME) has suggested 10 measures to the RBI, including deferring the payment of installments under the Emergency Credit Line Guarantee Program, to help MSMEs to amid the coronavirus pandemic.
The Emergency Line of Credit Guarantee Program is the largest fiscal component of the 20 lakh crore Autonomous India Mission program announced by the government last year.
âWhen it comes to a crisis, the first expense that is cut is the payroll. It is our humble prayer to RBI and the government, not to let an MSME (Micro, Small & Medium Enterprises) shut down until all efforts to save it have failed. The alternative is scary.
With tens and thousands of these small establishments, lakhs of workers will come on the road, âthe federation said in a letter to RBI Governor Shaktikanta Das.
Suggestions include giving proper weight to the MSME vintage and treating this period of the last three years as an exception, forgiving the flaw; payment of salary and / or social charges; suspend NPA allocation practices based on automated systems based on direct-lined Excel sheets for the COVID period, and defer payment of ECLGS installments.
In addition, he recommended sanctioning term loans to companies whose CAPEX could be blocked halfway; relaxation of NPA standards, restructuring and improvement on a case-by-case basis.
âWe also urge you to quickly create a working group with only relevant stakeholders and beneficiaries,â said FISMe.
He added that these suggestions might sound “too original,” but the stakes are too high to ignore any of them without considering them.