New Delhi, Feb. 10 -- The Federation of Indian Micro and Small & Medium Enterprises (FISME) has raised serious concerns over the financial challenges faced by MSMEs and has sought urgent intervention from the Parliamentary Standing Committee on Finance.

In a letter to Committee Chairperson Bhartruhari Mahtab, FISME has outlined critical policy issues leading to the premature closure of many MSMEs despite their recognised role in job creation, equity, and exports.

FISME has pointed out that the SMA framework, introduced under the tenure of Raghuram Rajan, is exacerbating financial distress rather than aiding recovery. The automated, computer-driven system fails to consider qualitative reasons for payment delays.

Once an account is marke...