The All India Association of Industries (AIAI) welcomes the first Monetary Policy announced by Dr. Raghuram Rajan, Governor, Reserve Bank of India, the concept paper released by the RBI on Trade Receivables and Credit Exchange for the micro, small and medium enterprises (MSMEs) envisages a credit exchange for both primary and secondary market segments and aims to help the MSME sector on delayed payments and dependency on their corporate clientele said Mr. Vijay Kalantri, President, All India Association of Industries (AIAI).
AIAI further states that the model outlined in the paper also ensures impartial and transparent credit pricing to the flow of credit to the MSME borrowers. This will also help to differentiate interest rates to Micro Small Enterprises (MSEs) whose loan come under the Credit Guarantee Scheme which was much needed and is a step in the right direction to boost growth and employment.
However Industries specially the infrastructure sector and MSMEs expect reduction in the interest rate to boost growth and employment which at present is as low as 4.9% of GDP and needs the much required boost.
AIAI further feels that the Reserve Bank of India should consider moratorium on interest and instalment payment of Corporate Debt Restructuring (CDR) cases and as well as reduction in interest rates on them.
April 01, 2014