Not even 50 per cent of the amount has been paid to MSMEs under the announced relief package

New delhi date. 30 September 2020, Wednesday

Under the Self-Reliant India Package, the government has provided Rs. A package of Rs 3 lakh crore was announced, but so far banks have not paid even 50 per cent of the amount under this package.

Economic activity at all levels in the country was hampered during the long lockdown that followed the epidemic. About 60 million MSMEs (micro, small and medium enterprises) operating in the country were hit hard during this period.

In order to face this adversity, the government last year. On 15th May, without any guarantee for this sector, Rs. A package of Rs 3 lakh crore was announced. Under the package, loans to the sector were announced till October 31.

According to the data available about this package. As on September 31, only 2,8,191 MSMEs have benefited from the scheme. That is, getting a loan has proven to be successful.

According to banking sector data, Rs. Loans of Rs 1,3,8 crore have been sanctioned. Out of which Rs. 1,3,8 crore has been paid. Thus, due to sluggish performance of banks, the MSME sector has not been paid even 50 per cent of the amount under this package so far.

According to sources in the MSME sector, the terms of the loan are due to the lax attitude of the banks and even 20 lakh MSMEs have not benefited from the scheme. Despite the need for tough decisions on this package, the sector has stayed away from the relief package. Banking regulations have also affected this activity.

Experts in the field said that small businesses need cash, not loans. During the four phases of unlock, most of the economic activities have remained the same as before. That's when small businesses need to have cash on hand to get back on track.