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The Centre and RBI may have come up with various relief measures for small and medium enterprises to tide over the pandemic-led crisis, but various last-mile issues are impeding their effective implementation. This includes industries getting funds from banks to serve as additional working capital.
While companies have welcomed the various steps taken to enhance liquidity in the banking system, facilitate bank credit and ease regulatory measures to reduce the financial stress, they seek acceleration of efforts at the bank branch level. The availability of additional working capital will be critical for sectors such as textiles and engineering to restart operations once the lockdown ends, industry players said.
Need for speed
Several industry associations have started putting in place the working capital and other requirements for their members. They have requested the Finance Ministry and RBI to advise banks to expedite credit so that businesses can be restarted quickly.
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