RBI governor, Shaktikanta Das recently, while addressing the 185th Foundation Day of Bombay Chamber of Commerce and Industry (BCC), said that the RBI’s plan of supporting the ECLGS scheme of government and other subordinate’s debt schemes will come as a big relief to the stress and pressure the MSMEs have been under owing to the Covid 19 pandemic. It will also pave the way for the opening of new business opportunities. The MSME sector is one of the vital sectors of the economy which acts as a growth engine and has been severely affected by the pandemic. Therefore, it is essential to help them in their time of need. To support them the government introduced ECLGS and credit guarantee scheme for subordinate debt which in turn was supported by RBI’s various monetary and regulatory measures like interest rate cuts, a moratorium on debt servicing, high structural and durable liquidity, asset classification standstill, loan restructuring package and the CRR exemption on credit that is disbursed to the very new MSME borrowers.
In favor of the ECLGS scheme, out of Rs 3 lakh crore corpus banks sanctioned around Rs 2.39 lakh crore as of Jan 29 2021 which was more than 2.14 lakh granted to 90,57,300 borrowers as n Jan 8, 2021. MSME Minister Nitin Gadkari claimed and stated that in the case of subordinated debt scheme, the number of beneficiaries was just 272 involving Rs 3084 crore as of February 4, 2021.
Another major sector of the economy affected due to the pandemic was exporting. India was the worst performer when compared to its Asian counterparts like China, South Korea, Vietnam, Bangladesh, Malaysia, and Indonesia. The governor said that the focus is at the moment on preventing the volatility of Rupees. At the start of the pandemic, the was valued at Rs. 75.68 per dollar in March 31and peaked at Rs 76.90. He has assured that once the volatility is prevented all the export-related concerns would be addressed.