NEW DELHI : To evaluate the progress of emergency credit score line assure scheme to assist companies affected by COVID-19, the finance ministry is more likely to meet the heads of public sector banks and high 4 personal lenders on Wednesday.
The assembly can be chaired by Monetary Companies Secretary Vivek Joshi. The heads of HDFC Financial institution, ICICI Financial institution, Axis Financial institution and Kotak Mahindra Financial institution are additionally anticipated to attend the assembly, information company PTI reported.
Extension of emergency credit score line assure scheme (ECLGS) and Mortgage Assure Scheme for COVID-Affected Sectors (LGSCAS) past March 31 will be on agenda. The assembly will evaluate progress ECLGS for Ministry of Micro, Small and Medium Enterprises (MSMEs) and likewise talk about on the challenges associated to those.
The Union Finances 2022-23 introduced the extension validity of the scheme as much as March 2023 and a rise within the restrict of assured cowl of ECLGS by ₹50,000 crore to a complete cowl of ₹5 lakh crore, with the extra quantity being earmarked completely for the enterprises in hospitality and associated sectors.
Finance Minister Nirmala Sitharaman within the newest Finances stated, “Final yr, I proposed revamping scheme will take impact from 1st April 2023 by the infusion of ₹9,000 cr within the corpus. This may allow extra collateral-free assured credit score of ₹2 lakh crore. Additional, the price of the credit score can be diminished by about 1%.”
The ECLGS was introduced as a part of the Atmanirbhar Bharat Package deal in Could 2020 with the target to assist companies together with MSMEs to fulfill there to assist companies together with MSMEs to fulfill their operational liabilities and resume enterprise in view of the misery brought on by the COVID-19 disaster, suffered by them on account of non-repayment of the funding by debtors.
The general ceiling initially introduced for ECLGS was ₹3 lakh crore which was subsequently enhanced to ₹4.5 lakh crore.
The ECLGS has helped save no less than 14.6 lakh MSMEs which benefited from ₹2.2 trillion in extra credit score. This extra credit score movement has saved round 12% of the excellent MSMEs credit score from slipping into NPAs, the report stated.
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Supply: Live Mint