Badish Jindal.
Ludhiana, May 13, 2013: Federation of Associations of Small Industries of India (FASII) has thanked the Ministry of Micro Small and Medium Enterprises and Reserve Bank of India for accepting its demand providing a huge relief to MSEs vide its Notification dated May 9 this year.
“For this FASII had a series of meeting with the minister of MSME, Secretary MSME and this issue was also raised in the meeting of Standing Committee of RBI by FASII”, said the FASII National President Badish Jindal in statement here on Monday.
He revealed that the Reserve Bank of India has issued the following instructions in this notification:
- The all the Loan applications will have to be cleared in a time bar by all the Banks
· All MSE’s applications received by the branch physically with required documents are entered in Central Proposal Tracking System
· CPTS shall automatically generate an acknowledgement of the application, having a unique application serial number, acknowledgement shall be issued by the branch to the applicant
- The banks will have to maintain a record of all the applications received by MSE’s for loan.
- Banks should endeavour to make application status available to the customer online using the unique application serial number on a day to day basis.
- The Banks will have to prepare an online tracking system of received applications.
- The data will have to be submitted to the regional/zonal and head offices by the banks.
- A format of quarterly application have been formed by the RBI to keep the proper records of all the applications.
- The head office will maintain the records of flow of loans to MSE’s.
- Data should also be generated District wise and State wise for use by the bank, Reserve Bank of India, and the Government. Such data may be utilised by the bank to find out the progress made in flow of credit to MSME sector at each level.
- The position in this regard may be displayed by the banks on their website from the quarter ending June 2013.
The other main issue taken up by RBI is Rehabilitation of Sick Units:
· Timely detection of sickness in MSE’s.
· The banks may evolve a system driven mechanism for monitoring rehabilitation of sick MSE units.
· Each bank should constitute a MSE Rehabilitation Cell (MRC) at all its Zonal / Circle Head Quarters. The Cell should be responsible for monitoring identification of sick units / incipient sickness, conducting viability study, follow-up action, etc. for timely rehabilitation of viable / potentially viable sick MSE units.
The third main instruction is Sensitising branch level functionaries:
. Banks need to sensitise their Branch level functionaries of the requirements of the MSE sector and hold training programs to improve the awareness of guidelines pertaining to the sector, at branch level.
“With these reforms MSEs will get the loans under without collateral upto Rs.10 lakhs by normal procedure and upto Rs. 1 crore under CGTSME without collateral, and with transparency the corruption will decrease and the MSE’s will get loan on time”, Jindalsaid.