Page 45 - Banking Finance May 2021

ARTICLE

move up the maturity assessment model (Bronze-Silver-Gold- Y The ZED rated MSME will get 0.5% interest rate on the
Diamond-Platinum). concession on loans
Y The ZED rated MSME will also get 50% concession in
The rating is a weightage average of the marks obtained processing fee
on each parameter. Surveillance audit will be carried out Y The Government provides Rs.25 lakhs for adopting
by QCI.
technology
Y The Government provides Rs.25 lakhs for setting up of
An Example
new ETP
Enterprise X is being rated on 35 parameters. Of these 35
parameters, on 18 parameters the MSME is at Level 5, on Y Rs. 10 lakh for domestic patent and Rs.20 lakhs for
another 12 parameters it is at Level 4 and on remaining 5 international patent registration
parameters it is at Level 3. Hence the scores will be Y Rs. 5 lakhs for purchase of testing equipment
calculated as follows: Y Rs. 10 lakhs for ZED certification and handholding
Y Extra 80%, 60%, and 50% subsidy on the cost of ZED
Parameters Level Marks certification in addition to the subsidy provided by the
18 5 90 Government of India
12 4 48
The above benefits are provided by the Government and
5 3 15
different banks from time to time and subjected to change.
Total 153
Typically an MSME can apply for re-certification after 6
months of initial certification. However, the subsidy on the
Enterprise X Rating: Total points / Applicable levels: 153/35 cost of the re-certification component will be given to those
= 4.37, hence the MSME X is a ZED Platinum Company.
MSMEs only which achieve a higher level in rating from the
initial/previous rating. For example, if the previous rating
Benefits for ZED rated MSMEs of an MSME unit was Bronze, then subsidy will be extended
The benefits for ZED rated MSMEs is explained in detail only if re-certification rating of that MSME unit is minimum
below: Silver.

Over 30 bank employees died in COVID-19 second wave in Gujarat: Source
A prominent bank employees' union has claimed that nearly 15,000 employees of banks have tested positive for Corona
Virus in Gujarat so far, and over 30 of them died during the second wave of the COVID-19 pandemic in March, 2021.
To combat the present situation, Maha Gujarat Bank Employees' Association (MGBEA) has put forward several
demands, such as reduced cash hours, extra holidays and relaxation in working hours.

The union, associated with the All India Bank Employees Association (AIBEA), sent a letter to Gujarat CM Vijay Rupani
seeking his intervention as the CM is the chairman of the State Level Banking Committee (SLBC). In the letter, MGBEA
stated that around 50,000 bank employees are working in over 9,900 branches across Gujarat. Following some reports
that the new strain of COVID-19 is airborne, employees are now afraid of entering the branch premises or interacting
with customers. While over 30 staffers have succumbed to the infection in March, 2021, the entire staff of some of
the branches was found Corona Virus positive. The union urged Rupani to announce some relaxations in view of the
second wave of corona virus outbreak.

The letter stated, "To reduce human-to-human contact, banks should be allowed to deliver only essential services like
cash deposit, withdrawal, transfer and clearing, so that less number of people visit bank branches."
To reduce the exposure of staff to the public, the union also demanded that cash hours should be restricted between
10 am and 1 pm only, and employees should be allowed to go home after business hours. It also demanded that all
Saturdays be declared as holidays for the next two months. If any staff member tests positive, the branch must be
shut for at least 48 hours, the union demanded.

BANKING FINANCE | MAY | 2021 | 45