MSMEs seek easing of Basel norms in banking sector

New Delhi: Companies in the micro and small and medium enterprises sector have sought easing of banking sector norms — Basel norms in particular — to facilitate lending to units that have been affected by Covid-19. Basel norms are international banking regulations issued by the Basel Committee on Banking Supervision (BCBS) to fortify the banking system.
As part of its budget recommendations to the finance ministry, the Federation of Indian Micro and Small & Medium Enterprises (FISME) has also urged that offline and online sellers should be treated at par in GST to enable smaller MSMEs leverage ecommerce.

In the run up to next year’s Union Budget, finance minister Nirmala Sitharaman has been holding meetings with stakeholders from various industries. “Bank(s) dedicated to MSMEs may be encouraged by giving sops to attract promoters from within and outside the country,” FISME said in its recommendations.