RBI announcement is a big relief for the industry – SIMA

Sakthikantha Das, Governor, Reserve Bank of India (RBI) has announced a slew of financial relief measures as the extension of COVID package to tide over the unprecedented crisis faced by the industry.

Ashwin Chandran, Chairman, The Southern India Mills’ Association (SIMA) has stated that the extension of moratorium period of term loan for another three months i.e., upto 31st August 2020 has come as a sigh of relief for the ailing textiles and clothing industry.  He has stated that the MSME package announced by Minister of Finance on 13th May 2020 under “Aatma Nirbhar Bharat Abhiyan” would benefit MSME segments and Friday’s RBI announcements would benefit the non-MSME industrial units to mitigate the financial crisis.

The deferment of interest on working capital, reduction of margin money for working capital and the relaxation of prudential financial norms are the welcoming features of the announcement made by RBI Governor today.  SIMA Chairman has stated that the extension of the permissible period of pre & post-shipment export credits by three months and the time for remittances against normal imports from six months to 12 months would also greatly help the exporters and importers to ease their liquidity.