In a major relief for micro,
small and medium enterprises (MSME), Finance Minister Nirmala Sitharaman
on Thursday announced that stressed MSMEs would not be declared
non-performing assets (NPA) till March 31, 2020.
The minister also said that banks can recast loans to MSMEs instead of declaring them NPAs.
the liquidity situation, Sitharaman said that the effort is to ensure
that credit is provided wherever there is a need, but in a transparent
manner. After meeting the heads of public sector banks, the Finance
Minister said that banks have started moving in line with the measures
announced off late for providing liquidity.
She also announced
that that there would be a gathering of non-banking financial companies
(NBFC) and retail customers in 200 districts of the country, until
September 29. Banks would be encouraged to include new retail customers
for lending, she said.
The intention is that liquidity should reach consumers before the festival season begins, she added.