Initiatives taken for MSMES in the backdrop of Demonetization

Government has taken several measures for MSMEs in the backdrop of Demonetization which include:

1.      The coverage of the loans covered under the Credit Guarantee Scheme for MSEs implemented by CGTMSE has been increased from Rs. 1 crore to Rs. 2 crore. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has issued a circular to all its Member Lending Institutions (MLIs) in this regard.

2.      The Credit Guarantee scheme has also been extended for loans given to MSMEs by NBFCs. A circular in this regard has already been issued by CGTMSE

3.      Department of Financial Services (DFS) has issued an advisory to Banks regarding raising of working capital/cash credit limit for MSEs.