Bankers in Odisha told to be sympathetic to ‘Fani’ affected MSMEs

Bhubaneswar: In a special meeting of SLBC Sub Committee on MSME and Skill Development chaired by Shri L.N. Gupta, IAS, ACS, MSME today, all banks of the state have been requested to take necessary measures to assist MSMEs affected by the extremely severe cyclone ‘fani’. Bankers have been requested to consider rescheduling/restructuring of loans of the affected MSMEs in line with the Master Directions of RBI (on Relief Measures by Banks in the Areas affected by Natural Calamities) – 2018. They may consider relaxing the mandatory minimum period of 90 days for restructuring of loans and consider to reduce their rate of interest in cyclone affected districts to address cash flow issues relating to MSMEs.
Bankers have also been asked to expeditiously decide in the cyclone affected districts on 5,258 project applications pending with them for finance under PMEGP. It was clarified by the State Director, KVIC that Margin Money Assistance target fund of Rs.107 crore is available for the current year. In case a beneficiary has already paid the first loan and is affected by the cyclone may be extended 2nd loan under PMEGP up to Rs.1 crore.
For restoration of livelihood in the cyclone affected rural and urban areas, the bank branches have been advised to sanction fresh loans to MSMEs under MUDRA, PMEGP and Stand up Programmes. General Managers, DICs/RICs have been asked to convene Special District Level Coordination Committee (DCC) meeting of banks in this month and take expeditious steps for clearance of pending applications for loans in ‘Fani’ affected districts/blocks.