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MSME Ministry seeks increase in withdrawal limit to Rs 2 lakh per week

07 Dec 2016 Evaluate

In order to ease cash crunch of micro, small and medium enterprises (MSME) sector, the MSME Ministry is seeking an increase in the withdrawal limit to Rs 2 lakh per week from Finance Ministry. At present, the weekly withdrawal limit for current accounts is Rs 50,000. The MSME sector, which is the largest employer in the country has been hit hard by demonetization, with business getting impacted due to the loss of liquidity in spending in the supply chain.

Minister of State for MSME Haribhai Parthibhai Chaudhuri has said that they had a discussion with MSME associations and received suggestions like increasing the withdrawal limit from Rs 50,000 to Rs 2 lakh, removal of penalties and interest. He said that in this regard they will soon send a proposal to the Finance Minister and the Prime Minister. Though, observing demonetisation will help to control the fiscal deficit, the minister also suggested businesses to go in for digital transactions.

On the e-commerce front, Chaudhuri said that the government is witnessing a new trend with many MSMEs taking the e-commerce route to establish themselves in the Indian market and they are using internet not only as a marketing tool but also as a tool to enable them to understand if a unique product has high demand in the market. He added that by adopting e-commerce MSMEs will achieve significant advantages such as increased revenues and margins, improved market reach, access to new markets, cost savings in marketing and communication spend, customer acquisition and improved customer experience.

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