Q&A library

How do businesses know which precautions and measures are required to reopen?
Questioned by Sajith Kumar
Government guidelines are already shared on the return to work approach that companies need to follow. In some companies such as Infosys in India are using technology and apps to track employee health. Many other companies across the globe are doing it too. So following government rules and also trying to invest in the right technology plus ensuring employee wellness are important.

Are there any statutory/legal regulations that the business will have to follow for re-opening their businesses ?
Questioned by Sajith Kumar
There are certain protocols to be followed for different states for re-opening businesses - number of customers allowed in at the same time, number of staff allowed in at the same time, hygiene practices to be followed, temperature checks to be done etc. These rules and protocols will vary from business-business and from state-state. For the same, one can keep abreast of the circulars issued by State Governments regarding the protocols etc. to be followed.

I own a stationery shop and with educational institutions being shut down, my business has also been negatively affected. At present I do not have cash flow, and am even unable to pay my existing debts. Is there a solution for this ?
Questioned by Shiv Naresh soni, Uttar Pradesh
There are some financial solutions in the market which may help you. For e.g. Muthoot Fincorp's new product offering - Ashwas Dinam Gold Loan is exactly meant to help traders and give them the impetus to start the business.To know more about this product you can visit your nearest Muthoot Fincorp Branch or the website - www.muthootfincorp.com or call on 1800 102 1616.

When will MSME loan funding begin?
Questioned by Ashish Chaudhari, Maharastra
On May 12, 2020, Prime Minister Narendra Modi announced a 20-lakh crore economic relief package titled Atmanirbhar Bharat Abhiyan. The relief package is being unveiled in tranches from May 13, 2020 by Finance Minister Nirmala Sitharaman. The first tranche is aimed at micro, small and medium enterprises (MSMEs). The terms and conditions and availability of the MSME loans differs in all financial institutions. You may check with your nearest financial institution to check the availability of the loan and also to know your eligibility.

Any advice on CSR activity planning in different ways
Questioned by Venkat M, Karnataka
It depends the social causes that you want to tie your CSR with. Each one has many channels through which you can help. For example if you identify education as the social impact area, you can conduct CSR activities that centre around teaching underprivileged children, setting up or sponsoring slum schools, supporting teachers' training programs for government school staff, supplying school supplies and so on. So activities can be planned only once the cause that you want to align with is identified.

Why micro, small and medium enterprises got worst hit by Covid-19 lockdown?
Questioned by Yashwant Purohit, Gujarat
Covid-19 has left its impact on all sectors of the economic system but nowhere is the hurt as much as the Medium, Small and Micro Enterprises (MSMEs) of India. All anecdotal evidence available, such as the hundreds of thousands of stranded migrant workers across the rural area, suggests that MSMEs have been the worst casualty of Covid-19 induced lockdown. It has likewise been reported that just like the first relief package, called the PM Garib Kalyan Yojana, which was heralded by the government on March 26, the second package, too, would primarily concentrate on the MSME sector. Primarily, most of them are not registered anywhere. A large reason for this is that they are simply too modest. Even GST has its threshold and most micro enterprises do not measure up. This apparent invisibility tends to work for enterprises as well as against them. Being out of the formal network, they do not have to maintain accounts, pay taxes or adhere to regulatory norms etc. This brings down their expense. Only, as it is absolved in a time of crisis, it also constrains a government’s ability to serve them. For example, in some of developed countries, the Government has attempted to directly provide wage subsidy and special credit to smaller firms, but that could occur because even smaller houses were being represented.A central reason why banks dither from extending loans to MSMEs is the high proportion of bad loans slippage for relatively bigger enterprises.The other big issue plaguing the sector is the delays in payments to MSMEs — be it from their purchasers (which includes the government as well) or things like GST refunds etc).(Cited from an Indian Express article on 07 May 2020)

Will there be any option where the client gets working capital to restart his business and repayment of loan starts after 4 - 5 months ?
Questioned by HEMRAJ KUMAWAT, Rajasthan
The Micro Finance Institutions (MFIs) have always played a critical role in times of crisis, in extending financial assistance and reviving life back to normalcy. The microfinance sector has stood by its customers ensuring confidence and credit at the grassroots when it is needed the most. Public sector lenders - Canara Bank, UCO Bank and Indian Overseas Bank have come out with some relief measures and announced emergency credit line for its customers. The State Bank of India also announced an emergency credit line to meet any liquidity mismatch for its borrowers. SBI has an IND- COVID Emergency Credit Line (IBCECL) for large corporates that provides additional funding of up to 10 per cent of the Working Capital Limits (both Fund Based and Non Fund Based limits) with a maximum limit of Rs 100 crore.

How will the #RestartIndia Campaign help to reduce the gaps in cash flows for general public and customers ?
Questioned by Shakti Singh Rajawat, Rajasthan
#RestartIndia helps provide information on relevant financial schemes available especially for those affected by the Pandemic. Our website www.restartindia.in is an interactive forum wherein anyone can post questions and have their queries resolved by experts from various industries. A part of our campaign aims at educating the customer in a moment of crisis such as the current one. and so the website and relevant campaign communication will contain information people can use to seek out solutions for their challenges or avenues through which they can have their queries answered. For e.g. information on some financial services companies that may have come up with new product offerings and modified some existing products to suit the ever evolving needs of our customers especially in these difficult times.

What are the new schemes for large scale industries?
Questioned by Karthik B Nair, Kerala
The companies with greater turnover rate and the companies with no or lesser loan repayment due can avail new loans or top up loans if the respective bank or financial institution approves the request. Most of the companies are facing competition from other foreign companies. Considering this, the government may prohibit global tenures in government procurement tenders up to Rs.200 crores. There could be essential amendments in the General Financial Rules based on the gravity of the situation.

What are the new schemes for small scale and medium scale industries?
Questioned by Gireesh pg, Kerala
The government has introduced new schemes for small scale and medium scale industries including Collateral-free loans. In the article published by The Hindu on 17 May 2020, it is reported that on 12 May 2020, Prime Minister Narendra Modi announced a 20-lakh crore economic relief package titled Atmanirbhar Bharat Abhiyan. The first allotment is aimed at micro, small and medium enterprises and non-banking financial companies (NBFCs). All MSMEs with a turnover of up to 100 crore and with outstanding credit of up to 25 crore will be eligible to borrow up to 20% of their total outstanding credit as on February 29, 2020 (The emergency Credit Line Guarantee Scheme). There is also a proposal to infuse equity into MSMEs through a Fund of funds system and CGTMSE scheme is also available. The respective State Governments and other financial institutions are also facilitating new schemes for small scale and medium scale industries. Kindly check your eligibility with your nearest financial service provider.

#RestartIndia Response Network
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