RBI measures for MSMEs to help growth revival in employment-oriented sectors: EEPC India

Reserve Bank of India measures to provide one - time restructuring window for advances to the MSMEs would help growth revival in the employment-oriented sectors, said EEPC India chairman Ravi Sehgal.

The MSMEs contribute significantly to the country's exports . With global markets being subdued, exporters, particularly those in the SMEs are facing challenges.

The RBI measures through loan restructuring and providing CRR incentives to the banks to lend to MSMEs would certainly help the exporting sector. Ample liquidity with the banks should lead to lowering of interest rates as part of effective transmission of earlier reductions, said Sehgal.


Less than half of the earlier reductions of 135 basis points have been passed on to the borrowers. Further cut in the Repo rate would have been an icing on the cake.