New Delhi, Aug 29 (KNN)  Some of the members of parliament (MPs) have asked the Finance Minister P Chidambaram to direct banks to follow a soft approach towards genuine loan defaulters in the MSME sector.

“Members of the consultative committee gave various suggestions with regard to recovery from wilful / genuine defaulters and how to deal with different NPA (non-performing assets) cases.

“Some members raised the issue of softer approach by the bankers towards genuine defaulters such as farmers and promoters of MSMEs, among others, as they are vulnerable to external factors which are beyond their control,” said an official statement of the Finance Ministry.

Participating in the meeting of the Parliamentary Consultative Committee attached to his Ministry, Chidambaram said that the bankers have been told to be sympathetic and follow a humane approach towards genuine defaulters.

“This is the time for hand-holding of borrowers who are facing difficulties, especially the industry,” the Finance Minister said.  (KNN/PC)