New Delhi, Jan 8 (KNN) Banks and Micro, Small and Medium Enterprises (MSMEs) will have to "work together" towards restructuring of the latter's bad loans, Governor of the Reserve Bank of India (RBI), Shaktikanta Das said.

The Governor held a two-hour meeting with the MSME representatives after the RBI issued a circular in the last week of December pertaining to restructuring of MSME loans up to Rs 25 crore.

The restructuring has to be implemented by March 31, 2020.

He mentioned, "The banks have been asked to look at the viability of individual MSME before making (the restructuring scheme) applicable to MSMEs.”

“We hope that the banks and the MSME units work together so that the scheme is implemented in letter and spirit," Das added.

He said, "The effort, of course, is to see that maximum number of units get the benefit.”

But then, while extending the benefit, the viability aspect also has to be considered. Without going into the viability aspect, obviously, it would not be possible to implement the scheme," he said.

The banks, now, have to place their findings before their boards and put forth the guidelines to "examine the viability of individual proposals and monitor the performance of such restructured assets".

He also said, "We have prepared the list of issues, which will be examined internally," he said.