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Thursday, September 24th, 2020

CII Finance Facilitation Centre to aid SMEs avail funds easily: RBI Regional Director

cfa3a9b9-4a1e-4d0d-b6fb-c3e1e8e38e5cINVC NEWS Chandigarh, The Micro, Small and Medium Enterprise (MSME) sector constitutes the largest chunk of industrial units in the country and is thus crucial to revive growth of the economy. The sector constitutes 70% of the total CII membership and forms 90% of its members from Chandigarh. To reach out and help these institutions to avail credit facilities, CII formally launched its ‘Online SME Finance Facilitation Centre’ in Chandigarh today. The chief guest on the occasion, Regional Director, Reserve Bank of India, Nirmal Chand, launched the centre. Vijay Kumar, Director, MSME Development Institute, Ludhiana, Ministry of MSME, Government of India, was the guest of honour on the occasion. The dignitaries also released SME Finance Facilitation brochure on the occasion.

Since its inception in 2014, the Centre has been providing advisory and credit facilitation support to SMEs. It was formally launched in Chandigarh today.

CII has partnered with leading Banks & NBFCs to support MSME in availing of funds towards growing their businesses needs and expected to sign MOU with many more banks in the future.

These banks include SIDBI, CRISIL, Indian Bank, Indian Overseas Bank, ICICI, DHFL, Muhtoot Fincorp, KNAB Finance, Religare Finvest, Synthesis, Electronica Finance Ltd, HDFC Limited etc to facilitate SMEs on for their financial needs.

Mr Nirmal Chand, Regional Director, RBI, highlighted that lending institutions must make an effort to understand why borrowing units fail. Addressing the reasons through facilitation centres can immensely improve productivity of SMEs. He appreciated the CII for launching the ‘Online SME Facilitation Centre’ in Chandigarh. “We must hold more such initiatives to promote such facilitation centres,” he said. He expressed concern that though the number of loan accounts has increased in Punjab and Haryana but the overall loan amount has decreased. In this context such initiatives by CII will help increase the quantum of loan amounts. He said the RBI will also invite CII in its empowering committee.

Dr Dinesh Dua, Chairman, CII Chandigarh Council, and CEO & Director, Nectar Lifesciences Ltd said, “The online facilitation centre launched by CII will ensure that MSMEs are provided with credit at cost-effective rates, to meet their demand for working capital as well as for expansion and diversification.”

Capt Alok Sharma, Past Chairman, Regional Committee on MSMEs, CII NR and MD & CEO, Forge (India) Pvt Ltd said, “In view of highly promising growth rate in the world over the next two decades, promoting MSMEs is crucial if India wants to be a part of this growth story. With this goal in mind, CII has launched the facilitation centre to provide advisory and credit facilitation support to SMEs. He also briefed about some of the initiatives taken by the Regional Committee on SMEs like Tax and regulatory Affairs Advisory Desk for SMEs and SMB projects.

Mr Vijay Kumar, Director, MSME Development Institute, Ministry of MSME, Government of India,emphasized the need to have more and more facilitation centres. He said technological upgrade, new marketing strategies, are a must for MSME units to survive. The ministry is conducting outreach programmes across the states to create awareness among SMEs about avenues to access finance. He appreciated CII for launching the Finance Facilitation Centre as it will bridge gap between Banks and SMEs.

Mr Amit Tripathi, Deputy Director, CII, said, “The Centre will operate as a one-stop-shop, aggregating financing options from multiple large financial institutions. It will match the SMEs financing demands with the banks and financial institutions, and also project large requirements for finance across financial institutions, provide facilitating role for SMEs to approach the process of accessing funds in a more professional manner. Finance Facilitation Centre will also work towards creating Financial Literacy amongst the SME members through Roadshows, Seminars Webinars and FFC Academy.

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