New Delhi, Sep 19 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.
On 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 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.
It would be a significant relief for many micro, small and medium enterprises of the State of Telangana and India, Giving a boost and an opportunity to be scaleable which would impact the GDP for good, said Md Rizwan a CEO of an MSME company Pro Healthy Wayz.