Economy News-Daily Digest: 2 Key Updates
1. Nepal Army to not participate in first ever joint military exercise of BIMSTEC nations in Pune
The Nepal Army will not participate in the first ever joint military exercise of BIMSTEC nations in India.
The proposal for the joint military drill was first forwarded by the Indian Army in June, followed by an initial meeting of BIMSTEC senior army officials in New Delhi.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional grouping comprising Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
The military drill was dragged into controversy as no diplomatic or political level agreement was made before deciding to take part in the exercise.
2. Furnish GST returns, get an OD of ₹1 crore
Micro, small and medium enterprises will now be able to get quick overdraft ICICI Bank announced the facility known as ‘GST Business Loan’ and said it would be available to any such business, including non-customers of the bank. This facility brings in the improved convenience of availing of quick OD facility, as it does away with the need for a paper-intensive assessment of financial documents, including balance sheets of previous years.
MSMEs will be sanctioned the overdraft amount within two working days and the bank will assess their GST returns to assess their eligibility for working capital limit.
The overdraft amount could range between Rs 10 lakh and Rs 1 crore and would be up to 20 per cent of the turnover reported in the GST return. To avail of the facility, MSMEs can give residential, commercial or industrial property as collateral security. The customer will also not have to show any financial statements.
It is renewable on an annual basis, depending on the repayment track record of the overdraft facility by the customer. With over one crore MSMEs registered with the GST Network, the lender is hopeful that the facility will give a boost to their business expansion plans.