Hotline: 1800 102 2007
X
Search Business Opportunities
2014-03-20

MSMEs continue to face problems of delayed payments: RBI

The Reserve Bank has sought feedback on a concept paper that discusses the subject of financing the micro, small and medium enterprises (MSME).

The Reserve Bank has sought feedback on a concept paper that discusses the subject of financing the micro, small and medium enterprises (MSME). 

 

The concept paper on 'Trade Receivables and Credit Exchange for Financing MSMEs' seeks to address the concerns related to financing the sector given its potential in growth, employment and inclusion in economy and society. 

 

"...This concept paper has been prepared taking into account the interest expressed by few entities and in consultation with a few stakeholders. Though it is desirable to implement such a model for the benefit of a vast section of business entities in the country, it is also imperative to understand and address the many issues and challenges," outlines the preface of the concept paper. 

 

RBI said MSME segment continues to face problems of delayed payments and dependency on their corporate buyers, despite efforts on multiple fronds as well as enabling legal and regulatory provisions.

 

The concept paper says that one of the constraints impacting the MSME sector is inadequate finance, particularly working capital.

 

"In the case of MSMEs, the need for quick conversion of trade receivables, an important component of current assets of business entities, into cash assumes great importance since the lack of opportunities affects their liquidity and thereby their business, quite significantly," says the paper. 

Related opportunities
  • Competitive Exam Coaching Institute
    About Us: Trishul Defence Academy is one of the leading defense..
    Locations looking for expansion Uttar pradesh
    Establishment year 2004
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 2200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Lucknow Uttar pradesh
  • Tea and Coffee Chain
    About Us: Bubble Rush is a bubble tea restaurant from the..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Others Food Service
    Longlive Pizza Franchise Form About Us: This form is simply a request..
    Locations looking for expansion Tamil nadu
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Chennai Tamil nadu
  • About Us    M/S Tanmay Bohra Car Rental Pvt. Ltd. holds a..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts