22/06/2021 - Government Policies

Please review mam /sir

KEY POINTS

·        The world over, micro, small and medium (MSME) enterprises are the backbone of a healthily balanced economy.

·        The MSME Development Act of 2006 proposed guidelines for resolving the problem of delayed payments. Further, the Factoring Regulation Act, 2011, helped codify the factoring business to address payment delays.

·        As per a recent report, Unlocking Credit for India’s Job Creators, brought out by the Global Alliance of Mass entrepreneurship (GAME), the total outstanding payments to be made by buyers to registered MSMEs in India could be about Rs.15 trillion.

·        The trade receivables discounting system (TReDS) initiated by the Reserve Bank of India (RBI) is a unified platform for sellers, buyers and financiers to facilitate the financing of trade receivables of MSMEs from corporate , including government departments and public sector undertakings (PSUs).

·        In January 2018, the Economic Survey noted that the goods and services tax (GST) offered exciting possibilities for not just ushering in a single market, but also for other efficiency gains.

·        This would grant buyers and sellers access to e-invoices through a single window for factoring and also enhance competition and liquidity, reducing the price of factoring.

·        A committee headed by U.K. Sinha had recommended that a credit enhancement mechanism for extending guarantees/comforts with respect to invoices accepted by smaller/lower-rated corporates be evolved.

·        This could be facilitated by the National Credit Guarantee Trust Corporation and the department of financial services.

kindly review and provide suggestions sir/mam

Kindly review 

Please review