New Delhi, Feb 10 (KNN) Eyeing at facilitating relief to the Micro, Small and Medium Enterprises (MSMEs) impacted by the teething effects of Goods and Services Tax (GST), the Reserve Bank announced extension up to 180 days to clear the dues to banks, a move that is being welcomed by the sector.

M. Velusami, Vice President of Tirupur Exporters Association (TEA) in a press interview welcomed the move. He said that the reserve bank’s decision would help units in capital intensive clusters like Tirupur.

The sector have been experiencing complications in the transition phase under the new taxation and therefore weren’t able to make the repayments in time, with the RBI extending the time period, it comes as a big relief to the sector, Velusami added.

According to the new norms, the amount from the borrower overdue as on September 1, 2017, and payments from the borrower due between September 1, 2017 and January 31, 2018 are paid not later than 180 days from their respective original due dates, would be treated as standard assets in the books of the banks.

Earlier Minister of State (I/C) Giriraj Singh hailed the apex banks decision and said with the increased time period to declare a unit as NPA, the country is to see a substantial push towards ease of doing business in the country.

He further said that the MSME associations have time and again brought the concern in the light of the Ministry, following which the Ministry initiated the process of considering the extension. (With Inputs for a media report) (KNN/DA)