The MSME
sector is under severe condition due to the COVID-19 outbreak! The
policymakers in India are swiftly making policies that can protect the MSME
sector from its adverse effects.
The government needs to support the
MSME sector during this period of crisis. And, that is the most important
reason they are coming up with several policies and schemes to avoid the risks
and loses.
When talking about the Indian
economy, The MSME
sector plays an important role. Therefore, it becomes important to provide
urgent funds stimulus to MSME sector business owners along with the safety net.
Here is the list of schemes and
policies that are formulated by the government to protect the MSME sector:
- Reserve Bank of India (RBI) has passed a list of COVID-19 operations and business continuity measures to all the commercial banks, non-bank financial companies, and payment banks.
- All financial companies instructed to maintain the list of the impact of coronavirus on balance sheets, liquidity, and asset quality.
- RBI recently announced a moratorium on term loans, which made it easier for the loan payers to defer their interest payments.
Here is the list of different policy frameworks that can be
proposed for different MSME sectors:
Undertake measure for easy access to loans/credits.
Undertake measures to minimize the impact on labors/workers
Undertake measures for business owners/self-employed
Undertake measures to defer utility and security payments
It is important for every business to create plans well in
advance. Social distancing and quarantine measures are inaction by the
government to prevent coronavirus cases in India. Slowly and gradually, all the
business operations will restart with precautionary measures.
Although, the situations with COVID-19 are unpredictable.
India is protecting MSME
sector through different policies and schemes to maintain the cash flow.
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