Banks urged to increase working capital limit for MSMEs

The Coimbatore Compressor Industries Association has sought interim increase in working capital limit for MSMEs as prices of basic raw materials, including copper, aluminium, and steel has spiked 30% to 80% in the last six months.

In a memorandum submitted to the Reserve Bank of India, the Association president M. Raveendran sought up to 20% of the working capital limits should be increased similar to the Emergency Credit Line Guarantee Scheme. Further, the working capital loans and advances extended to industries are currently subjected to annual renewal process involving enormous clerical works on both, bankers and industries.