Skip to main content


Showing posts from December 30, 2018

Micro Small and Medium Enterprise Sector- Restructuring of Advance

Is Bank of India Listening?

News Letter Is Bank of India Listening? For the last six months, I am requesting a meeting with the chairman of the bank and even their office is not bothered to reply or acknowledge. This is regarding one unit of their branch at Madhapur Hyderabad, where the unitholder has requested about 12 months back to restructure the account and requested for the formation of a committee as per RBI directions of March 2016 where they want postponement  of term loan or moratorium but both branch and zonal office are not moving an inch. Neither they are accepting or rejecting and only verbally they are postponing. The unit is defence ancillary and because of problems of the main unit with the ministry of defence the order inflow has slowed down but now order flow has increased for six months and the branch is insisting to pay money for term loan which is not allowing the unit to generate enough revenue to execute the pending orders. Now where the unit can go? These kind of problems at branch level are…

MSME Ombudsman Needed

News Letter MSME Ombudsman Needed Recently I read a news article where 6000 bank employees are punished for various reasons. It is the tip of the iceberg and major cause of sickness in MSME is the attitude of bank employees, not taking timely decisions. Though RBI is sensitive to problems of MSME and time to time, they give directives/circulars etc for correcting but they are not implemented in right spirit at branch level and for not taking a decision there is no punishment. Branch level has been given a lot of powers including giving ad-hoc of 20% but it is not generally given and this is causing a lot of problems and every branch manager and credit officer tries to show their power of harassing the entrepreneurs. Also, delay in renewal of A/C is getting delayed as they ask information in bit and pieces. There are many such operational matters which causes sickness. I suggest having MSME Ombudsmen kind of mechanism either at RBI or at MSME commissioner's office with the power of semi-j…