Banks Will Ensure Bill Discounting Facility For MSMEs To Ease Liquidity: Sitharaman
On the merger of banks, everything is going smoothly, the bank boards have all been on board, they have taken the necessary steps to keep that process going smoothly, the minister said.
Finance Minister Nirmala Sitharaman said on Monday that public sector banks have sufficient liquidity and efforts are being made to ensure that due payments are released to micro, small and medium enterprises (MSMEs) sector by large corporates.
"To ensure liquidity for small businesses, banks have been asked to provide bill discounting facility to the MSME sector against payments due from the large corporates," she said while briefing reporters after meeting heads of state-run banks for measures to boost the economy. Bill discounting is an arrangement under which a seller recovers an amount of sales bill from financial intermediaries before it is due. Such intermediaries charge a fee for the service.