The pandemic situation has caused a very huge dent in the economy. With such a huge volatility and unpredicted future it is also very important that the country should be kept running. Here I would like to show my heartfelt gratitude to those institutions which is supporting the economy of our country. Â
Banks:
In wake of #CORONA virus Outbreak, banks support all its existing borrowers by launching COVID19 Emergency Credit Facility which would help them meet temporary liquidity mismatch in operating cycle. Emergency Credit Facility” for its existing MSME, agriculture and other business segment borrowers.
Banks have announced schemes for existing MSME borrowers with some banks additionally extending schemes to other segments including agriculture, self-help groups, organised sector employees, a senior public sector bank official said.
The quantum of loan is in the form of additional line of credit ranging from 10 per cent or higher of existing working capital limits, the official said adding that the banks have kept provision for creation of charge on existing securities for this additional facility without seeking any fresh requirement of prime or collateral security.
The quantum of loan is in the form of additional line of credit ranging from 10 per cent or higher of existing working capital limits, the official said adding that the banks have kept provision for creation of charge on existing securities for this additional facility without seeking any fresh requirement of prime or collateral security.
The loan schemes have a moratorium period of up to 6 months.
The official further said the public sector banks are gearing up to do heavy lifting with regards to various direct benefit transfer scheme announced by Finance Minister on Thursday.
The micro, small and medium enterprises that are into manufacturing of any products or providing any services related to fighting pandemic such as sanitizers, masks, gloves and body suit ventilators will get loan at a concessional rate of 5 per cent.
More over the bank is open with a strength of 50% employees to carry out the day to day activities in the branches and also the IT department is maintaining the online support for the people.
Asset Management Companies
The Corona Virus pandemic is creating disruptions across the economy and businesses. How mutual fund companies are supporting and also try to keep the economy running in the wake of such pandemic situation.
Over the past weekend, the seriousness with regard to the corona virus grew in India. We started to hear more and more about the talk on social distancing and the various precautions we need to take. Also, the number of those infected started to go up. AMC’s already informed the colleagues (in head office plus branches) the previous week that they should not leave the city for any travel and avoid meetings wherever possible. All the events have also being cancelled that were due until the end of March.
The plan going forward is that those who live far and need to come by public transport to the office will work from home. They will come only on an urgent basis if there is an absolute need. Few of who stay close to the office and can drive/walk there within a few minutes time. They will be coming to work to keep the office running and keep monitoring the situation and act appropriately as the situation demands.
They are proactively working on three fronts. One, to make sure employees are safe but productive working from home. Two, to make sure investor capital is prudently managed through the crisis. Three, communicate responsibly with partners and investors. Through digital platforms and video communications, they are trying to tell investors to be wise and calm.
Stock Exchange:Â
All most all States have announced a complete lockdown even of public transport. In Mumbai, clarifications were issued to authorities to exempt employees working in exchanges and broking offices from the lockdown.
All financial markets are integrated globally, and India is among the top seven markets globally in equity volumes. Hence, equity and derivative markets cannot be shut down while global exchanges/financial markets are actively operating.
SEBI and the exchanges have permitted trading via terminals from various locations in the country. Though up to 50 per cent of the front office staff of broking offices have been allowed to work from home, such a facility cannot be extended to back office staff and those looking after servers and operational affairs. Thus, it is imperative to declare capital markets/ stock broking services as essential services exempted from the lockdown.
A grand salute and a very big respect to all who are keeping the economy running even after such pandemic have gripped the whole world.
Disclaimer: All the views in the blog are personal of the author not attributing to any one
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