New Delhi, Apr 20 (KNN) In a bid to bring in ease for the sector, the Ministry of Micro, Small and Medium Enterprises is in talks with Reserve Bank to consider relaxing norms for non-performing assets (NPA) to help the MSMEs, Additional Secretary, MSME, Ram Mohan Mishra said.

Mishra further informed that the ministry is trying to persuade the reserve bank to reinstate the eased window of 180 days from the current 90 day period.

MSME Secretary A.K Panda has had meetings with the officials of RBI and Department of Financial Services to explore the possibilities, Mishra informed.

Talking to KNN, Sunil Vaish, President of MSME body Indian Industries Association said that the 90 day limit for MSMEs is a deep pain for the sector.

Once the MSME fails to make the repayment of the loan, the unit ends up getting a negative tag, thus lessening its chance for obtaining any further loan in future.

“For a micro unit, the process of processing the supplies and obtaining payment itself takes nearly 90 days, therefore even if the unit is in a position to ay by then, it has already crossed the set date”, Vaish said.

Vaish informed that the majority of the NPAs by the MSMEs used to happen because of the 90 day time crunch.

Once implemented, the relaxation is very likely to have an overall positive effect and the industry will be able to expand its operation not having to fear of getting declared as non-viable, Vaish added. (KNN/DA)