Alternate funding sources for MSMEs
Online Signatures: 2
MSMEs, which are significant contributors to the nation's economy, should be provided with alternate source of finance as banks reject proposals for credit facilities once they are classified as a NPA and accounts closed under One Time Settlement. Banks violate RBI guidelines for Revival of MSMEs but strictly follow RBI guidelines for classifying the accounts as NPA and insist on OTS. Many MSME Entrepreneurs mostly of the first generation are robbed of all options to run their units again, once the account is closed under OTS which seriously damages their credit rating. MSME entrepreneurs in India need to be given further opportunities to resurrect their units and support themselves and their families.
Transforming IndiaApr 05