New Delhi, Aug 24 (IANS) Finance Minister Nirmala Sitharaman on Friday announced much needed measures to boost the subdued micro, small and medium enterprises (MSME) sector.

At present, MSMEs, which are considered as the backbone of the economy and one of the largest employment generators in the country, have been impacted by a consumption slowdown and liquidity constraints.

In relief to the sector, Sitharaman announced that all pending GST refunds due to MSMEs will be paid within 30 days.

Besides, all future GST refunds shall be paid within 60 days from the date of application.

Furthermore, she announced that public sector banks will issue an improved one-time settlement (OTS) policy based on "check box" approach to benefit MSME borrowers in settling their overdues.

On the loan front, announcements were made regarding the facility for MSMEs to track loan applications online.

Apart from fiscal and reform measures, the government has also decided to soon shift to a single definition for MSMEs.