More measures required for MSMEs

Hyderabad: Industry bodies representing micro, small and medium enterprises (MSMEs) strongly feel that more steps are needed to revive the sagging economy.

"What RBI announced on Friday is good for economy hit by global pandemic Covid-19. But there is an urgent need for more measures to support MSME sector which is reeling under unprecedented and unexpected challenge," said APK Reddy, national president, Federation of Small and Medium Enterprises of India (FSME India).

He urged RBI to direct banks not to invoke NPA norms against MSMEs at least for a year. "Further, interest on working capital and existing term loans should be waived for one year. Besides, banks should offer interest free loans for one year to help MSMEs recover from the adverse impact," he said. The central government and RBI should compensate banks for offering such sops. Otherwise, banks will not implement such steps even if RBI directs them to do so, he added.