Nirmala Sitharaman had called the head of the unit for comments on the implementation of the MSME program (File)
New Delhi:
Private banks delay implementation of crore credit system of 3 rupees for the micro, small and medium-sized enterprises (MSME) sector, Laghu Udyog Bharti (LUB), an agency affiliated with RSS, announced to the minister on Monday. of Union Finances, Nirmala Sitharaman.
Ms. Sitharaman called Laghu Udyog Bharti’s secretary general, Govind Lele, for comments on the implementation of the Rs 3-lakh crore emergency line of credit guarantee program (ECLGS) for the MSME sector, which has been hit hard by the national foreclosure of coronaviruses.
Lele said he had informed the minister that prominent public sector banks such as the State Bank of India and the Bank of India had started to lend under the program. But at the branch level, projections of revenue and profitability over three years are sought before sanctioning any amount, he said.
“Private banks are ridiculous in the implementation of the program. Therefore, they should be informed immediately of the implementation of the program,” said Lele to the Minister of Finance.
He said that to achieve their goal, bank officials give preference to high-value loan accounts. It is therefore important that the government order the banks to sanction the plan funds proportionately.
The Laghu Udyog Bharti urged Ms. Sitharaman to include unscheduled cooperative banks in the program as they have a very large number of MSME loan accounts in their wallets.
The RSS affiliate is investigating the implementation of the program, said Govind Lele, adding that it will be done in a week and the results will be shared with the Minister of Finance.
Finance Minister Nirmala Sitharaman announced last month an unsecured automatic loan of 3 lakh crore rupees for businesses, including MSMEs, as part of the Rs 20 lakh crore economic package.
The loan will run for four years with a 12-month moratorium, she said.
