Railway equipment suppliers in Coimbatore face delays in bank loans due to online registration of MoDs

The Railway Equipment Suppliers’ Association in Coimbatore representing the MSME units that supply components and spares for the Railways has said that delay in implementation of online Memorandum of Deposit of Title Deeds by banks is leading to delays in loan disbursements.

S. Surulivel, president of the Association, said in a press release on Tuesday that the Tamil Nadu government introduced a system from September 15 under which the registration of Memorandum of Deposit of Title Deeds (MOD) should be carried out online directly by banks. However, several banks, including the Tamil Nadu Industrial Investment Corporation (TIIC), have not updated their software systems to facilitate this online process. They claim that they are unable to get the login ID for this process and face issues when they try to do the registration online.

As a result, many Micro, Small and Medium Enterprises are facing serious difficulties and delays in completing their loan formalities and obtaining loan disbursements. This is affecting their working capital requirements and day-to-day business operations. Chief Minister C. Joseph Vijay and the Minister concerned should direct all banks, including the TIIC, to upgrade their software systems and implement the online MOD registration process without delay. “We request the Government to treat this matter as urgent, as timely access to bank finance is essential for the survival, development and growth of MSME industries in Tamil Nadu,” he said.

Tamil Nadu / banking / manufacturing and engineering