The Salem District Small Scale and Tiny Industries Association has urged the Centre to take immediate steps to help MSME units and small and medium trading enterprises by allowing them to operate with the existing financial facilities sanctioned by various financial Institutions to meet out the working capital requirements following the currency crisis.
A resolution adopted at the executive committee meeting of the association held here recently said that the working capital facility is sanctioned by the banks after mortgaging the immovable properties of the promoters. Once the MSME sector units are permitted to operate their working capital facilities the entire employees of the respective units will regularly get their daily and weekly wages.
K. Mariappan, president of the Association, said that the restriction on the withdrawal of money to a maximum of Rs. 24,000 per week for the working capital facility applicable to the account holder and also to the corporate sector units is not at all fair.
Crippled
Due to the restriction, the works in the MSME units and civil construction activities have been totally crippled.
The delay in the re-calibrations of ATMs has further worsened the situation.y.
Mr. Mariappan said that another resolution appreciated the committed continuous contribution made by the banking sector employees which is highly commendable.
But for their co-operation the difficulties suddenly created due to the demonetisation would have affected the common man much more.
The Association demanded the Reserve Bank of India to permit the rural based banks and all other financial institutions eligible to lend out jewellery loans to the MSME units, agricultural sectors, small traders and farmers should be sanctioned without any restriction to meet out the essential expenses.
S. Govindan, former president of the Association and M. V.Sellamuthu, general secretary, also spoke.
