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Govt restricts import of ties between India and Maldives. The "It has been increased to Rs 3 crore for
RuPay launch 'will bolster the existing customers. Once the portfolio
gold jewellery Maldivian Rufiyaa', a senior minister of matures, we would like to extend it

The government imposed restrictions Maldives said. across all the lending products," he
on the import of gold jewellery and
"We are currently engaged in discus- added.
parts from all countries, except from sions with India to explore avenues for
its free-trade agreement (FTA) partner facilitating payments in rupees," the Mandal went on to say that there was
United Arab Emirates amid an 'unusual minister said. a need to assess proper credit worthi-
surge' in the inbound shipments. ness of MSMEs. "The methodology
Speaking about the upcoming RuPay used by credit rating agencies have an
According to a notification released by launch, Minister of Economic Develop- inherent bias against MSMEs because
the Directorate General of Foreign ment and Trade Mohamed Saeed, said of their size. Very few MSMEs get AAA
Trade (DGFT), import of items such as "The upcoming launch of India's RuPay rating from leading agencies. Due to
finished products of gold jewellery - service is anticipated to further bolster this, cost of borrowing also goes up,"
gold studded with pearls, diamonds, the Maldivian rufiyaa (MVR)." He also he added.
precious stones - and parts have been emphasised that "addressing the dollar
put under the "restricted" category issue and reinforcing the MVR is a top
from "free" category at present. priority for the current administration." GST panel may consider
The jump in imports has been the dropping 12% slab
sharpest in the case of gold jewellery Sidbi may take express The fitment committee under the

parts that saw 30 times jump to $1.55 loan to more MSMEs Goods and Services Tax (GST) Council,
billion in FY24 from $51.51 million a comprising central and state officials,
year ago. The largest source of imports Sidbi is planning to expand the base for has begun a rate rationalisation exer-
its digital-based Express Loan for
for the gold jewellery parts have been MSMEs. Sidbi deputy MD Sudatta cise afresh, checking the possibility of
from the UAE ($1 billion), Indonesia dropping some of the rates, particu-
Mandal said this the Financial Aware-
(341.9 million), Tanzania (107.2 mil- larly the 12 per cent slab, to achieve a
ness conclave organised by Bengal
lion), and Thailand ($35.9 million). revenue-neutral structure, a senior
Chamber of Commerce. He also pointed
out that under the product, loans are official with direct knowledge of the
Maldives to launch RuPay sanctioned within 10 minutes. matter told Business Standard.
service According to Mandal, Express Loan The GST regime could see an overhaul
India's RuPay service will soon launch was initially introduced for procure- in the current financial year (FY25) as
in Maldives. The announcement ment of machinery and the ticket size it may move to a three-slab structure
comes amidst the tensions in bilateral was Rs 1 crore. from the existing four.

10 | 2024 | JULY | BANKING FINANCE