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CEA tells banks to ensure large companies pay MSMEs on time

Updated: Jun 18, 2022 12:40:29pm
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CEA tells banks to ensure large companies pay MSMEs on time

New Delhi, June 18 (KNN) The Chief Economic Advisor (CEA) V Anantha Nageswaran has urged banks to ensure that large companies pay MSMEs and think about ways and steps for it. 

Speaking at an even on Friday he said that public and private enterprises use multiple ‘creative excuses’ to delay supplier payments.

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“Hence most micro and small businesses face the problem of getting bank finance at reasonable rates,” he said while addressing the delayed payments issue faced by MSMEs. 

He was delivering a keynote address at the FE Modern BFSI Summit in Mumbai. 

Access to finance and working capital must be ensured and so whatever banks can do directly and indirectly will be of huge advantage, he added. 

A recent report by Global Alliance for Mass Entrepreneurship (GAME) and Dun & Bradstreet (D&B) had reported that Rs 10.7 lakh crore i.e. 5.9% of the gross value added (GVA) of Indian businesses annually as delayed payments due from buyers to MSME suppliers.  (KNN Bureau)

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