Role of Bankers in 20 lakh crore package of Government

For MSME

1.     Collateral Free Automatic Loan for MSME.

2.     Those MSME having Loan up to 25crore and turnover up to 100crore will be covered in this scheme. 100% Central Government Guaranteed will help 40 Lac Units.

3.     This loan will be for 4 yrs with a moratorium of 12 Months.

4.     45 Lakh MSME Units will get benefit from It. Total 3 Lakh Crore Loan will be Given under this scheme.

5.     20000Crore will be infused as Subordinate Debt for stressed MSME. Two Lakh SME will get benefit from this.

6.     Government will provide 4000 crore to CGTSME Trust.

7.     Rs 50000crore will be infused as equity to standard MSME. Will help them to expand their capacities.

8.      Definition of MSME changed. Investment Limit which defines a SME is changed. Now Turnover croreiteria is also introduced. Difference between manufacturing and service SME is removed. Micro Units- Investment limit increased to 1 crore from 20 lakh and Turnover can be up to 5 crore. Other changes are also done. For Medium Enterprise the limit increased to 10 crore Investment and turnover 50 crore, 20 crore and 100 crore.

9.     Tenders up to 200Crore relating to Government procurement will not be Global Tenders any more. MSME will get benefit out of it.

10.  E-Market Linkage will be Provided to all MSME due to less possibility of Trade fares. All Central Government outstanding will be cleared within 45 Days by Government help of all MSME.

·            For EPF

1.   EPF Payment was paid by Government for Mar, April and May now extended by another 3 months. 12%+12% will be paid by Government of India.

2.   Contribution reduced from 12% to 10% for those organization having more than 100 employee is done now.

·         For NBFC, MFI, HFC

1.   Special 30000 crore liquidity window will be given. Government will buy debt papers of these institutions even if investment grade. These will be fully guaranteed by government of India.

2.   To Give 45000 crore liquidity will be given to NBFC. First 20% loss will be born by Government of India. Even unrated papers will be get money under this scheme.

·         Discom :- Discom not able to pay the power generation Companies. 90000 crore Special fund created to pay all outstanding of Power Generation Companies. PFC and REC will give this money.

·         Contractors :- 6 Month extension will be given to all Government contractors of Railways, Roads, Other departments. Government Agencies will partially release Bank Guarantees to the extent of work completed. A Big Step.

·         Real estate :- Covid19 can be treated as act of God. Using the Force Major Clause the project registration will be extended by 6 Month automatically. Completion dates of existing projects to be extended automatically by 6 Months by Government authorities.

·         Tax Related :-

1.   Non Salaried TDS and TCS rates will be reduced by 25% from existing rates. This will be effective from tomorrow and will remain till 31-03-2021.

2.    All Pending Refunds will be issued immediately to all even above 5 Lakhs. For AY 2020-21 the ITR Dates extended to 30th Nov 2020, And Tax Audit Date extended to 31st October 2020.