Page 48 - Banking Finance April 2021

ARTICLE

Other initiatives to help MSMEs reduced to 10% each from existing 12% each for all
establishments covered by EPFO for next 3 months till
Y MSMEs currently facing problems of marketing and
liquidity due to COVID. Aug'20.
Y Due date of all income-tax return for FY2019-20 has
Y e-market linkage for MSMEs to be promoted to act as
been extended from 31st July, 2020 & 31st October,
a replacement for trade fairs and exhibitions. To
2020 to 30th November, 2020 and Tax audit from 30th
compensate for cancelled trade fairs, the government
has planned set up online market linkages. September, 2020 to 31st October, 2020.
Y SIDBI has also declared a concessional interest rate of
Y Fintech will be used to enhance transaction-based
lending using the data generated by the e-marketplace. 5% for MSME loans. This support is only given to those
units who are delivering the products which are related
Y Government has been continuously monitoring the to COVID-19.
settlement of dues to MSME vendors from Government
and Central Public Sector Undertakings. Making it Y RBI has launched Rs. 1,00,000 Crore Long Term Repo
mandatory for the Departments of Government of India Operations, this will help banks increase the lending
capacity at a low rate.
and the CPSEs to pay the receivables to MSMEs within
next 45 days. This will greatly help easing the situation Y COVID-19 Start-up Assistance Scheme (CSS) - This
of working capital of the MSMEs. scheme will provide finance for innovative business start-
ups that will help to improve the role of this scheme to
Y The announcements that TDS and TCS will be reduced provide financial stability and finance for the business
by 25% and that all refunds to entities including
Proprietorship, Partnership firms and LLP etc. would be firms. The primary object of this scheme is to provide
issued immediately, will also help the liquidity situation quick working capital for the next 45 to 90 days for a
start-up.
of MSMEs
Y The Vivaad se Vishwas scheme, addressing disputes on
Y Employee Provident Fund(EPF) support to the tune of
Rs. 2500 crore for Business & Workers for 3 more indirect tax payments, has been extended till December
months. Under 'Pradhan Mantri Garib Kalyan Package' 31, 2020.
(PMGKP), payment of 12% of employer &employee
contributions was made into EPF accounts of eligible Declaration:
businesses. Earlier this facility was provided for the "Views and opinions expressed in the article are mine and
not of the Bank".
months of March, April & May 2020. Now it has been
extended for a further period of 3 months, i.e June, July
& August 2020. References:
i) msme.gov.in
Y Further, in order to provide more take home salary to
employees and also to give relief to employers in ii) champions.gov.in
payment of Provident Fund dues, statutory PF iii) https://udyogaadhaar.gov.in/UA/
contribution of both employer and employee has been UAM_Registration.aspx# T

BoB cuts lending rate by 10 bps to 6.75%

Bank of Baroda has recently announced a reduction in Baroda Repo Linked Lending Rate (BRLLR) from 6.85% to 6.75%,
effective from 15 March, 2021. With this reduction in BRLLR, all retail loans of the bank would get automatically adjusted.
The customers availing home loan, car loan, mortgage loan, personal loan, education loan and all other retail loan
products could avail of this benefit. With this revision, home loan rates start at 6.75%, mortgage loan rates start at
7.95%, car loan rates start at 7% and education loan rates start at 6.75%.

In this regard, Harshadkumar T. Solanki, GM, Mortgages and Other Retail Assets remarked, "This reduction in BRLLR
makes our loans more affordable for the customers. We hope that our efforts towards the digital processes help
customers avail quick and smooth loans at the most competitive interest rates."

48 | 2021 | APRIL | BANKING FINANCE