Finance Minister Nirmala Sitharaman on Friday held a meeting with the CEO (Chief Executive Officer) of public sector banks and asked them to implement a large self-sufficient package to bail out the Corona-hit economy. The Finance Minister had his first meeting with the heads of state-run banks after announcing a relief package of more than twenty lakh crore rupees, through video conferencing. The Union Cabinet on Wednesday approved all the schemes of this package. Giving information about the meeting on Friday, the Finance Ministry said on Twitter that everyone underlined the need for immediate attention to the needs of MSMEs and other consumers.

For your information, let us tell you that guidelines have been issued regarding how the package will be implemented. Details will be given soon in this context. Indian Bank Managing Director Padmaja Chandru said after the meeting that the Finance Minister emphasized on the early issuance of additional loans to MSMEs, making the process, format and documents easier.

The most prominent among the relief package given to MSME is the Emergency Credit Line Guarantee Scheme of three lakh crore rupees. The 100 percent guarantee scheme at a discounted rate of 9.25 percent is the second largest announcement for a package of Rs 20 lakh crore. At present, the rate of bank loan given to MSMEs is between nine and half percent and 17 percent and it is decided on the basis of risk factor.

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Package failed to woo investors, the stock market closed this week too