EFCAI suggests FM to directly transfer funds into the accounts of MSMEs

Bhubaneshwar, Apr 21 (KNN) In order to create cash flow in the Micro Small and Medium Enterprises (MSMEs), the Entrepreneurs and Financial Customers Association of India (EFCAI) has suggested Finance Minister Nirmala Sitharaman to directly transfer funds into their accounts.  

EFCAI asked Minister to provide exclusive relief packages to MSMEs so that they can make up losses suffered by them due to the COVID-19 lockdown.

In a letter, EFCAI working president Harendra N Mahapatra stated that most of the problems of the MSMEs are finance related and the banks are averse to funding MEMEs.

''By funding the SIDBI or other banks, it will never help the MSMEs unless an innovative system of directly infusion of funds to their accounts is introduced as a one-time measure to make good COVID-19 losses,'' Mahapatra suggested.

Mahapatra also demanded that the EMIs shifted to one year from March 1, 2020 to February-end 2021 and the relaxation for Provident Fund, ESIC, GST and Income.

''To restart the operations, at least 50 per cent of the existing limits of all MSMEs registered under the GST to be enhanced suo moto and credited to their accounts automatically,'' he added.

Tax filing date and other compliances etc should be shifted by one year to February-end 2021. The CIBIL and other CICs should be advised not to treat the moratorium period as default and the NPA norms should be shifted to 180 days.

Mahapatra urged Sitharaman to provide the reliefs by April 30.