Tough Times ahead for MSMEs


Due to the emergence of the COVID-19 outbreak, there has been a problem created for traders because no sales are happening for them. But they still need to pay their dues to the vendors. So, Reserve Bank of India has decided to provide them some relief. They have been given a delay of 3 months in paying their fixed-term loans. However, the Confederation of All India Traders is not so happy with this decision. According to it the traders won be able their dues after 3 months also. Moreover, commercial banks are yet to come up with new loan repayment options as directed by RBI. According to CAIT "What will happen after three months? How will the small traders of the country will survive?"
These MSMEs may have problems receiving funds from the huge corporate houses which may cite reasons such as no sales. This is a cause of concern for MSMEs. These MSMEs may also have problems receiving funds from the government. Although the government has promised 45 days to send payments to MSMEs, it takes months sometimes.

Apart from paying their dues, the MSMEs may also face difficulties in paying the government dues. The traders cant let go of electricity and water bills because then their supplies would be cut. The banks although they have to wait for 3 months for getting their dues, will after 3 months take strong action against the defaulting traders. It is the job of the government to help these traders with a strong plan. 

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