Reacting over the Reserve Bank of India’s (RBI) decision regarding the restructuring of loans and infusion of some liquidity into the banking system, Karnataka Small Scale Industries Association (KASSIA) asked the apex bank to ensure easy access to credit for Micro, Small and Medium Enterprises (MSMEs).
KASSIA president K B Arasappa in a statement said that understandably, the Monetary Policy Committee (MPC) in its meeting has left the repo & reverse rates unchanged. This was expected and though in view of the creeping inflationary pressure in the economy.
”However, the RBI has addressed some issues regarding restructuring of loans and also infusion of some more liquidity into the banking system via, the NHB and the NABARD. What is required in this trying time is to ensure that liquidity is maintained in the financial system and industry particularly, small and micro enterprises have access to credit without complex requirements,” he added.
He also stated that there is also need to extend the moratorium on loans by some more months until the end of financial year so that industry is able to stand on its feet in view of the continued Corona pandemic and serious uncertainties in the domestic and global market.
”The restructuring of loans wherever deserving and needed must be done with a view to ensuring the flow of credit to the MSMEs,” he said.
KASSIA president also welcomed the other decisions of RBI such as loans against gold enhanced to 90 per cent of the value from the current 75 per cent, RBI to amend the priority sector lending guidelines to remove regional disparity, Revival of real estate sector.
”We also request the RBI to keep the regular compliances required with regard to NPAs till this turn normal,” he concluded.