New Delhi: The government is going all out to ensure that liquidity concerns of the MSME sector are addressed on priority under its Emergency Credit Line Guarantee Scheme (ECLGS). Also Read - TMC MP Likens Nirmala Sitharaman to 'Kal Nagini', Says People Dying Due to 'Worst FM'
As part of this, Finance Minister Nirmala Sitharaman on Monday chaired a meeting with private banks and NBFC to take stock of their preparedness to provide liquidity to the sector. Also Read - Sitharaman Stresses on Role of Tax Admin For 'Aatma Nirbhar Bharat'
Public sector banks are at the forefront of providing credit to MSMEs. In fact, 12 PSBs have disbursed Rs 14,690.84 crore worth of loans under the scheme upto June 9. But private sector’s performance has been rather slow. Also Read - Centre Discussing With RBI on One-time Loan Restructuring For Stressed Companies
“FM Smt. @nsitharaman chairing a meeting through VC with Major Pvt Banks & NBFC to ensure effective roll out of ECLGS and uninterrupted/smooth liquidity to Indian MSMEs in this difficult time,” the Finance Ministry tweeted on Monday.
The meeting was expected to discuss how the private sector can also play a role in supporting measures that are aimed at uplifting the overall economic mood in the country and prevent business from entering into deep crisis by keeping funds flow open.
The loans are being disbursed under the the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) announced by the government for meeting the liquidity needs of the MSME sector in the present crisis.
The ECLGS scheme is the biggest fiscal component of the Rs 20 lakh crore Self-Reliant India Mission package announced by Sitharaman last month.