Demand interest on current accounts from nationalized banks under Sweep A/C scheme: KASSIA to MSMEs

Bengaluru, May 4 (KNN) The Karnataka Small Scale Industries Association (KASSIA) has asked the MSMEs to demand interest on their Current Accounts from their nationalized banks.

In a communication to its members, KASSIA said, “If you have a current account in any of the nationalized banks, please demand that you be paid interest on your current account.”

The industry body pointed that under the Sweep Account Scheme, a current account MSME entrepreneur is also entitle d to earn interest.

KASSIA General Secretary said that the association has urged all the Bankers to extend this facility to all MSME current account holders in appropriate forums like the SLBC meet.

“Members may approach their bankers asking them to offer this facility to them,” Praveen stated.

KASSIA also stressed upon the need for the bankers to disseminate information about such Sweep Account facility widely since most MSMEs are unaware about interest being paid on current account balances.

The association also urged RBI to direct private banks like HDFC Bank, ICICI Bank, Axis Bank and including NBFCs to pay interest on the current account of their MSME customers, as there should not be any disparity between nationalized banks and private banks/ NBFCs as far as such services to MSMEs are concerned.

KASSIA said if need be, the association would even take up the matter with the Finance Ministry. (KNN Bureau)