INSUBCONTINENT EXCLUSIVE:
Finance Minister Nirmala Sitharaman on Friday praised the Reserve Bank of India (RBI) for easing cash reserve rules in its bid to promote
lending to the Micro, Small and Medium Enterprises (MSME) sector
"I am grateful and happy the Reserve Bank of India is in lockstep with the government," Nirmala Sitharaman said at a media briefing in
Mumbai after post-Budget discussions with economists, tax experts, policymakers as well as industry representatives among other stakeholders
time when the economy is staring at the worst pace of expansion in more than 11 years.According to the latest rules laid out by the RBI,
banks will get exemption in the cash reserve ratio over incremental lending to individuals and to MSMEs till July
important role in the growth of the economy, the RBI also extended the restructuring accounts for borrowers by one year to March 31, 2021."I
am glad that Reserve Bank has been dynamic enough to support MSMEs they have given a very exhaustive thinking about this and responded in a
by five times the turnover threshold for audit from the existing Rs 1 crore to Rs 5 crore, with an aim to to reduce the compliance burden on
the small retailers, traders and shopkeepers that are part of the MSME sector.However, the increased limit will apply only to those
businesses which carry out less than five per cent of their business transactions in cash, the Finance Minister said in her Budget speech.
