We MSME were requesting the honourable Govt of India to stop our bleeding by providing us some sort of financial stimulus in this period economic recession compounded by COVID – 19.<\/p>\n\n\n\n
The Govt of India took a positive measure by addressing the tax and statutory compliances which was immediately required due to financial year coming to an end and also some dealines required to be extended to help the MSME.<\/p>\n\n\n\n
Then they adressed the much wanted relief for poorest of poor for food and cash as they need to fight their livelihood and COVID-19.<\/p>\n\n\n\n
The much wanted oxygen for MSME announced by stream of measures below by RBI. We salute the govt of India in responding to the requirement of oxygen by MSME. The live example is our company today getting a approval of Rs 5 lakh as oxygen by way of working capital .which helped in complete paying our salary dues of February outstanding, due to COVID-19 most of our small clients closed their business and our receivable has got stuck up for 90-120 days.<\/p>\n\n\n\n
1) RBI cuts massive 75 basis points in reporates to counter economic slowdown added by COVID -19 pandemic.The reverse reporate has been cut by 90 basis points through 4% which makes unattractive for banks to deposit funds with RBI and instant lend to productive sector.<\/p>\n\n\n\n
2) Cash reserve ratio reduced by 100 basis point through 3% of net demand and time liabilities wiith effect from fortnight begining March 28 to the period of One year.<\/p>\n\n\n\n
3) RBI Relief measures announced stands at 3.2% of GDP. <\/p>\n\n\n\n
4) In addition to this Bank of India has launched Emergency assistance credit lines for its corporates, MSME and retail customers whose cash flows are affected by COVID-19 Pandemic: <\/p>\n\n\n\n
5) Three-month\nmoratorium for all term loans from all financial institutions in view of\nCovid-19 outbreak and lockdown.<\/p>\n\n\n\n
6) Subject\nto the above, banks can allow all customers reprieve from payment of EMI for\nthree months without affecting their credit score. The clarification given to this is lending\nfirms shall frame board-approved policies to all eligible borrowers. This means the individual banks can frame\npolicies. All commercial banks, rural\nbanks, small finance banks, local area banks, cooperative banks, all India\nfinancial institutions, NBFC including housing finance companies and\nmicrofinance institutions can extend the moratorium. This moratorium is not waiver but a deferment.<\/p>\n\n\n\n
7) The\nRBI has recommended to reschedule the due dates by increasing the tenure by\nthree months. Interest shall continue to\naccrue on term loans during moratorium period. \nMoratorium covers principal and interest that is total EMI. This will be applicable to all loans\noutstanding as on March 1, 2020. This\nincludes agricultural term loans and crop loans besides retail loans. Retail loans are home loans, personal loans,\neducation loans, auto loans and any loans that have a fixed tenure. It also includes consumer durable loans i.e.\nEMIs on mobiles, fridge, TV etc.<\/p>\n\n\n\n
8) Even\nthough credit cards are not term loans, RBI\u2019s operational guidelines have said\nthat credit card dues are also covered. \nRBI guidelines does not address moratorium on loans on credit cards but\nas credit card dues are covered, it is likely that loan taken on credit cards\nmay also be covered. RBI has\nspecifically mentioned retail loans. \nBusiness loan may not qualify like a project loan for setting up a\nfactory.<\/p>\n\n\n\n
9) Deferment\nof interest payments on all working capital loans taken by business. For this purpose, applicability will be on all\nworking capital facilities outstanding as on March 1, 2020. The accumulated interest for the period shall\nbe paid after deferment period. \nMoratorium or deferment will not be treated as change in terms and\nconditions of loan agreement and shall not result in downgrade of asset classification.<\/p>\n\n\n\n
LETS US PRAY COVID-19 \/ RECESSION ENDS, MSME MAKES MORE MONEY<\/p>\n","protected":false},"excerpt":{"rendered":"
We MSME were requesting the honourable Govt of India to stop our bleeding by providing us some sort of financial stimulus in this period economic recession compounded by COVID – 19. The Govt of India took a positive measure by addressing the tax and statutory compliances which was immediately required due to financial year coming […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-136","post","type-post","status-publish","format-standard","hentry","category-accounts"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=136"}],"version-history":[{"count":2,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/136\/revisions"}],"predecessor-version":[{"id":138,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/136\/revisions\/138"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}