Page 29 - Banking Finance July 2020

ARTICLE

Y Visit by Inspector through computerized random O All working capital or term loan would be eligible
allotment to get rid of Inspector Raj. for coverage to the extent of Rs.100 lakh only.
Y Single consent water & air pollution laws. Only 10 % O If facility/ies are extended to a MSME is/are more
units will be inspected. than Rs.100 lakh, interest subvention would be
Y Single annual return on 8 labour laws & 10 Central rules made available for a maximum financial assistance
of Rs.100 lakh only.
Y PSUs to source 25 % of annual procurement from MSME
instead of 20 % b) Not eligible:
O MSME exporters availing interest subvention for
Y PSUs to source 3 % from MSMEs run by women.
pre-shipment or post-shipment credit.
Y Central PSUs to compulsorily procure through
O MSMEs already availing interest subvention under
Government e- Market Place portal
any of the Schemes of the State / Central Govt.
Y Rs.6000 crores for creation 100 technology centers.
c) Operational Guidelines:
Y GoI to bear 70 % of cost for establishing pharma cluster.
O The interest relief will be calculated at 2% per
Y TReDs platform annum on outstanding balance from time to time
from the date of disbursal / drawal or the date of
As part of 'Access to Credit', in addition to
notification of this scheme, which ever is later, on
"psbloans59minute.com loan portal" and "TReDS (Trade the incremental or fresh amount of working capital
Receivables Discounting System)", 2% interest subvention sanctioned or incremental or new term loan
for all GST registered MSMEs has been announced on 2nd
disbursed by eligible institutions.
November 2018 to reward MSMEs who had faced
significant compliance challenges during the GST rollout. O The interest rates charged to MSMEs shall conform
to Code of Ethics and Fair Practices Code as
With linkage of interest subvention with GST registration, it
has been made clear that it is becoming the basic business published by respective institutions.
identification tool which will be linked to various measures O The loan accounts on the date of filing claim should
in the future. not have been declared as NPA as per extant
guidelines in force. No interest subvention shall be
The Scheme is applicable to both manufacturing and service admissible for any period during which the account
enterprises, provides incentives for onboarding on GST remains NPA.
platform which helps in formalization while reducing the
d) Submission of Claims:
cost of credit to MSMEs.
O SIDBI act as single national level nodal
Interest Subvention Scheme for to implementation agency to process & settle claims
from eligible lending institutions.
MSMEs 2018.
O Half Yearly claims shall be submitted to SIDBI,
The Scheme will be in operation for a period of two financial
Mumabi.
years, FY 2019 and FY 2020 and salient features of the
scheme are as under; O All claims have to be duly certified by the statutory
a) Eligibility: auditors of the eligible institutions.
O Enterprises should have valid Udyog Aadhaar O Disbursement of interest subvention against each
Number (UAN) and registered with GSTN (Goods claim to individual institution shall be only after
and Service Tax Network). release of funds from Ministry of MSME or GOI.

O Incremental term loan or fresh term loan or
incremental or fresh working capital extended from Obtaining of Udyog, Aadhaar Number;
2nd November 2018. (perquisite for submission of claim)
O The term loan or working capital should have been A large number of enterprises in India simply remains
extended by Scheduled Commercial Banks. unregistered due to the cumbersome paperwork involved

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