PHDCCI presents key recommendations to RBI to strengthen MSME financial ecosystem
A key recommendation included streamlining and rolling out the proposed Micro Credit Facility Cards, announced in the Union Budget, with a ₹5 lakh limit each. PHDCCI proposed renaming them to distinguish from consumer credit cards, standardizing issuance procedures, ensuring interest rate caps, and launching a centralized portal for monitoring card applications. PHDCCI also stressed the need to digitize and standardize banking documentation across institutions to reduce physical paperwork and promote transparency. In a push for inclusive financing, PHDCCI advocated for removing the current ₹20 lakh cap on Priority Sector Lending classification for credit through NBFCs, requesting an increase to at least ₹1 crore to support working capital needs in line with revised MSME definitions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
39 minutes ago
- Business Standard
RBI's rate decision, Q1 results to drive markets this week: Analysts
Equity markets this week will turn their focus on the RBI's interest rate decision, Q1 earnings from several blue-chip firms and tariff-related news for further cues, analysts said. Moreover, trading activity of foreign investors and trends in global equity markets will also drive investors' sentiment. "At the domestic level, all eyes will be on the Reserve Bank of India's monetary policy meeting, where the central bank's commentary on inflation, liquidity, and growth outlook will be keenly watched. On the earnings front, results from marquee companies, including Bharti Airtel, DLF, Bajaj Auto, Hero MotoCorp, Tata Motors, State Bank of India and Life Insurance Corporation of India, will shape sectoral momentum," Ajit Mishra SVP, Research, Religare Broking Ltd, said. Other important triggers include the release of HSBC services and composite PMI, crude oil price movement, and further commentary from the US on trade negotiations -- all of which are likely to influence near-term volatility, Mishra added. Trade-related concerns and persistent selling by foreign investors added to the gloom in the markets last week. Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, "Looking ahead, the RBI policy meeting scheduled for August 6 will be a key event, especially amid heightened volatility from both global and domestic triggers. "Meanwhile, several major Nifty companies, including Adani Ports, Bharti Airtel, Bajaj Auto, Hero MotoCorp, Trent, Titan, State Bank of India and Tata Motors, are set to report their earnings this week, which could drive stock-specific action". Last week, the BSE benchmark Sensex tanked 863.18 points or 1.05 per cent, and the NSE Nifty dropped 271.65 points or 1.09 per cent. US President Donald Trump's decision to impose a 25 per cent tariff on Indian goods and an unspecified penalty for trade in energy and defence goods with Russia was unexpected, and therefore, it has impacted market sentiments in the short term, VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. Indian equities are expected to remain in consolidation mode amid the imposition of US tariffs, a mixed Q1 FY26 earnings season so far, and intensifying FII outflows, Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said. "On the macro front, important data to watch include the RBI and Bank of England's interest rate decisions, along with the services PMI for both the US and India," he added. On Friday, the Sensex tumbled 585.67 points or 0.72 per cent to settle at 80,599.91, and the Nifty declined 203 points or 0.82 per cent to 24,565.35. Market perception is that after the initial chaos, there will be a deal between India and the US after the next round of negotiations. A steady trend of FPI flows will emerge after the dust settles, Vijayakumar said.
New Indian Express
an hour ago
- New Indian Express
Defence Minister Rajnath to launch India Manufacturing Show on Nov 6
BENGALURU: The 7th edition of the India Manufacturing Show (IMS), 2025, with a special focus on aerospace and defence engineering, will be held at the Bangalore International Exhibition Centre (BIEC) from November 6 to 8. Defence Minister Rajnath Singh will inaugurate the three-day expo that will feature 400 exhibitors, B2B meetings and vendor development programmes, highlighting Atmanirbhar Bharat and opportunities for MSMEs and defence collaborations. In the lead-up to the show, billed as the Aerospace & Defence Engineering Expo, Bharat Electronics Ltd Chairman and MD Manoj Jain underscored the critical role of large industries in nurturing and empowering MSMEs to make them globally competitive and locally empowered.. Speaking at the curtain-raiser event, Jain emphasised that quality and certification were non-negotiable in the aerospace and defence sectors. Addressing concerns frequently raised by MSMEs regarding payment delays, the BEL CMD urged them to adopt rigorous documentation processes. 'For instance, if GST payments are not properly reflected, it leads to delays. MSMEs must ensure documentation is flawless,' he said. ENS
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
ED probe into Anil Ambani linked companies: What turns bad loan into fraud
On Saturday, the Enforcement Directorate (ED) arrested a company director in a ₹3,000 crore loan 'fraud' case allegedly linked to entities associated with Anil Ambani's Reliance ADAG group. The arrest, under the Prevention of Money Laundering Act (PMLA), is the first in the case. While the probe continues, it brings to light a key regulatory distinction: when does a loan stop being a business risk and start being a criminal fraud? Default, wilful default, fraud: What RBI says India's financial system sees loan issues on a scale: default, wilful default, and fraud. Fraud: According to RBI's Master Directions on Frauds Classification and Reporting by Commercial Banks and Select FIs, a fraud involves deliberate deception using false documents, shell firms, and accounting manipulation. Classification as fraud follows a forensic audit and internal bank committee approval. When does PMLA come in? Fraud under PMLA is triggered when the activity generates 'proceeds of crime'. The sequence is: A default occurs The bank detects anomalies and initiates a forensic audit The audit confirms diversion or misreporting The bank files an FIR and classifies the loan as fraud ED or CBI steps in if criminality is apparent According to Section 3 of the PMLA, anyone knowingly involved in activities connected to proceeds of crime is guilty of money laundering. Where the Anil Ambani-linked case fits in The ED is investigating loans worth ₹3,000 crore taken by entities allegedly tied to the Reliance ADAG group. The funds were reportedly routed through shell companies to avoid repayment, triggering PMLA charges. The arrested individual, a director of a Mumbai firm, allegedly played a key role in the laundering process. While Anil Ambani has not been named in the arrest note, the ED has reportedly issued a lookout notice against him. He has also been summoned for questioning by the agency on Tuesday, August 5. Loan fraud vs bad loan: What's the difference? In India, many large defaults stem from business failure, not fraud. Some of the common causes include: Market downturns Failed business models External shocks (like Covid-19 or raw material inflation) In such cases, the resolution is civil and typically handled under the Insolvency and Bankruptcy Code (IBC). Fraud, however, requires evidence of intent—such as fake documentation or shell entities—and often results in criminal proceedings. What past loan frauds reveal Several high-profile frauds have followed similar playbooks: DHFL–Wadhawan (₹34,000 crore): Fake housing loans and fund diversion to shell entities ABG Shipyard (₹22,842 crore): Inflated assets and overseas fund routing Rotomac Pens (₹3,695 crore): Misuse of export credits for unrelated firms IL&FS: Inter-company lending inflated asset books and masked real exposure What happens after a fraud label? Once a loan is declared fraudulent: Borrowers are barred from bank finance for five years Lenders can initiate asset recovery via SARFAESI or IBC ED/CBI may seize assets and press charges Criminal convictions can lead to jail terms and financial penalties Borrowers often contest the fraud tag in courts, delaying outcomes Both civil and criminal paths proceed in parallel, making resolution complex and time-consuming.
