Banks urged to ensure large firms to make payments to SMEs on time

......Delivering the keynote address at the SME CEO Knowledge Forum organised byThe Hindu BusinessLine, in association with UTI Mutual Fund and Karnataka Small Scale Industries Association, RBI Regional Director Uma Shankar said banks must “exert (the) influence” that they enjoy with large industrial houses to ensure prompt payments to their SME clients. SIDBI and KPMG were associated with the event as “knowledge partners.” Ms. Shankar said small enterprises do not have the “muscle power” to force large companies to ensure that they comply with their obligations. Timely payments are a matter of the SMEs’ very survival, she observed. “Bankers or banks should step in to help them to survive,” she added..........

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