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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

Tirupur team meets RBI Governor

The members of Tirupur Thozhil Pathukappu Kuzhu met Reserve Bank of India Governor Urjit Patel on Friday and discussed matters faced by textile industry in Tirupur.
Cash crunch
R. Annadurai, a textile businessman and organiser of TTPK, told The Hindu over phone from Mumbai that matters regarding packing credit, and the cash crunch faced by the textile sector subsequent to the introduction of the Goods and Service Tax, were presented before Mr. Patel. The members asked the apex bank to consider the outstanding packing credit for above 365 days as non-performing asset instead of the present practice of 180 days.
The RBI should exert pressure on banks to make loans available under the credit guarantee fund scheme for micro and small industries without any collateral at an interest rate of 5 per cent. Mr. Annadurai said the Governor asked us to represent the GST and duty drawback-related matters with the government. He promised to look into the grievances related to extension of credit, and cash crunch.