Union Budget: Banks & NBFCs anticipate restructured scheme extension to help MSMEs

New Delhi, Jan 20 (KNN) Ahead of the union budget Banks and NBFCs (Non-Banking Financial Company) are expecting further relaxation for restructured loan accounts and an extended restructured scheme from the RBI. 

The Central bank had permitted banks to restructure MSME loans in 26 sectors barring them from being classified as non-performing assets  (NPAs) as per certain financial parameters by March 2022.

This will provide higher exposure to MSME sector through banks and NBFCs, Sharekhan, a brokerage firm said. 

Further, they demand the extension of Rs 1.5 lakh benefit on interest paid on affordable housing loans. 

It is expected that the government may extend these incentives till March 2023 as it falls short of its goal of "Housing for All."

Giving priority sector status to NBFCs and setting up of refinance window for the NBFC sector is also one of the demands. 

Clarity on privatisation of public sector banks and IDBI bank along with raising the FDI limit to 74 per cent is also anticipated. (KNN/ KT)