Monday, January 16, 2017

Central bank eases working capital lending norms for MSEs- to ease constraint in cash flow

A notification on RBI's website said, "Accordingly, banks are hereby advised that they may use the facility of providing above 'additional working capital limit' (approved by their boards as above) to their MSE borrowers, to overcome the difficulties arising out of such cash flow mismatches also." The notification states that this would be a onetime measure that will remain in force up to March 31, 2017. Thereafter, lending must be normalised in the subsequent working capital assessment cycle.

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