RBI will provide interest rate benefits to industries

Indore (Madhya Pradesh): The Reserve Bank of India (RBI) will take care of the problems faced by industries in obtaining loans and all industrialists will get the same treatment. Honest units will benefit from the interest rate if loaned.

RBI officials gave the assurance to industrialists at a public meeting, organized under the aegis of the MSME Development Institute and the Association of Madhya Pradesh Industries. RBI officials came from Bhopal to hear complaints and suggestions from MSME industrialists in the city.

Anjan Mishra, Managing Director in charge of RBI, Bhopal; Deputy Director General of RBI Krishna Murari Mathur; deputy director of RBI Sachin Sule; Sunil Dhaka of Bank of India; P Sampat Kumar, Deputy Managing Director, Central Bank of India; Deepak Kumar Jha, Deputy Managing Director, Bank of India; Deputy Managing Director, SIDBI, Anand Yadav; and Director of MSME Development Institute DC Sahu were present at the meeting.

Pramod Dafaria, Chairman of the AIMP, highlighted the problems faced by the units in banking transactions and lending instances. He said that in the case of a mortgage, the fees have to be paid again to change banks, whereas these fees should not be levied again. Mortgage stamp duty is also expected to be reduced by 0.5%, which is much higher than in other states. Industries do not benefit from unsecured loans from banks, which causes them a lot of problems. He asked officials for information on the number of cases of unsecured loans granted by banks. In banking practice, even though there is currently an online system, a lot of paperwork is done, which should be minimized.

Dafaria said that in many loan cases, bank interest rates are relatively high, which puts a burden on industries. The claim period for the bank guarantee is set at 12 months, which leads to many discrepancies. In case of minor errors, the bank charges the amount of stamp duty, while there should be a system for rectifying any errors. Banks should help small industries in case of late payment so that their cash flow remains intact and production is not affected. Dafaria also said that the RBI should provide a platform for raising awareness and leading banks and helping industries to benefit.

Industrialist Abhay Agrawal said that in many cases banks put the burden of fees on industries by getting the research report from the same unit three times and industries have to bear the fees which is a wrong process .

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Posted: Wednesday March 23rd 2022, 00:45 IST

Stephen V. Lee