Almost a million Covid hit MSME accounts restructured

New Delhi, 7 Dec (KNN) As per the parliamentary session that took place on Monday yesterday, restructuring of 9.8 lakh accounts of micro, small and medium enterprises (MSMEs) was effected by the Public sector banks (PSBs), owing to the impact of COVID-19 pandemic.

It has amounted to INR 58,524 crore as of November 26, 2021, the government informed the Parliament yesterday.

While, as many as 8.5 lakh accounts of individual borrowers of over INR 60,000 crore have also been restructured, as published in media reports.

The Finance Minister in a written reply in the lower house said, "As per inputs received from public sector banks (PSBs), as on November 26, 2021, resolution plan/restructuring has been implemented by them in 9.8 lakh MSME accounts amounting to INR 58,524 crore, and in 8.5 lakh accounts of individual borrowers amounting to INR 60,662 crore, as on November 15, 2021.”

In efforts to counter the impact of covid-19, the Central government and the RBI took several measures to support the retail and micro, small and medium enterprises (MSME) borrowers including a Covid-19 regulatory package granting moratorium of six months on payments of all instalments of term loans and deferment of recovery of interest on working capital from March 1, 2020 to August 31, 2020.

The reply also covered the Under Emergency Credit Line Guarantee Scheme (ECLGS) which was backed by 100 per cent guarantee of the central government, banks and non-banking financial companies (NBFCs) have sanctioned loans amounting to Rs 2.97 lakh crore as on 26 November 2021.

It also mentioned the launch of PM Street Vendor's AtmaNirbharNidhi (PM SVANidhi), to help the poor street vendors impacted by the pandemic to resume their livelihood activities enabled 30.23 lakh vendors to access credit amounting to INR 3,054 crore till November 30, 2021.