New Delhi: The central government may not consider the economic slowdown in the country in front of the public. But the government is also aware of the reality. That is why the government is taking all kinds of small and big steps which will help boost the economy. The government has asked the banks not to declare NPAs under the pressure of micro, small and medium enterprises (MSME) by March 2020. In addition, the government has asked banks to work on restructuring the debt of MSMEs.
Bank will meet with NBFCs and retail borrowers
Finance Minister Nirmala Sitharaman said after a meeting with the heads of public sector banks that a circular had already been issued by the Reserve Bank stating that the loans under pressure from MSMEs should not be declared as NPAs. The Finance Minister said that banks have been asked to comply with this circular.
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Banks have been asked not to declare MSME-pressurized loans as NPAs by March 2020 and work to restructure their debt. He said that this would help the MSME sector. The Finance Minister said that banks have identified some non-banking financial companies (NBFCs) that can be provided loans. In such a situation, cash and loans will be made available to those willing to take loans. The government is working on a plan to introduce huge amounts of cash in the market to generate demand.
