The Federation of Associations of Small Industries of India (FASII) has welcomed the new guidelines of the ministry of Micro Small and Medium Enterprises (MSME) and Reserve Bank of India (RBI) for disbursement of loan for MSMEs.
Badish Jindal, president of FASII, said, “As per the RBI directions, all the loan applications will have to be cleared in a time bar by all the banks and all the MSME's applications received by the branch physically with required documents are to be entered in Central Proposal Tracking System (CPTS) which shall automatically generate an acknowledgement of the application, having a unique application serial number, acknowledgement, shall be issued by the branch to the applicant.
Jindal added, “As per the directions, banks should endeavour to make application status available to the customer online, using the unique application serial number on a day-to-day basis and banks will have to prepare an online tracking system of received applications.”
He also said that the directions will help the MSMEs a lot.
Bindal said that in another important instruction banks have been asked to sensitise their branch-level functionaries of the requirements of MSME sector and hold training programme.