MUMBAI: As many as 41% of Micro, Small and Medium Enterprises said their clients have shifted to cheque or electronic payment after demonetisation , a survey by rating agency CRISIL showed.CRISIL’s survey conducted between November 24 and December 24 included over 1,100 MSMEs, with 58% respondents from manufacturing sector and the rest from services sector. Nearly half of the companies surveyed by CRISIL had revenue of under Rs 2 crore.“Demonetisation has spurred a major change in the way MSME’s conduct business. Most of them see only a short-term impact of demonetisation, and more than three-fourths believe it will be business as usual by June 2017,” it said in a report.Geography-wise, MSMEs located in tier-2 cities and small towns have seen a significant shift to cheque or electronic payments.Nearly half of MSMEs with annual turnover of less than Rs 2 crore reported a greater shift towards less cash compared to a third of those who had revenue of over Rs 25 crore, said CRISIL. This, the rating agency said, could be because non-cash payments are already there in the mid-sized firms.However, the transition will also cause short term pain. “Overall, growth estimates for FY 2017, which was expected at 15-20% before demonetisation, is now seen at 6-8%,” said CRISIL.Due to impact of demonetisation on day-to-day operations, annual growth will be muted for MSME’s, which typically perform better in the second half or October-March period of the financial year, it added.Sectors such as textile, agricultural products, steel, consumer durables, construction and automobiles, which traditionally have high reliance on cash will be affected the most by these short term jitters, CRISIL said, adding that many of the surveyed MSMEs expect to.Demonetisation has also impacted liquidity of MSMEs with 9% of respondents saying that they will face debt repayment issues. This could be an opportunity for banks as unsecured loan sources are drying up and three out of four respondents plan to approach banks for loans, said CRISIL.