Govt asks banks to go slow on MSME loan recovery
New Delhi, Sep 12 (KNN) The Government has asked the state-controlled banks to go slow on the recovery of loans from the micro, small and medium enterprises (MSMEs) as the economic downturn may have restricted their capacity to repay the dues on time.
According to media reports, the finance ministry has also asked state-run banks to review Mudra loans amid fears of a rise in NPAs in these accounts.
The NPA on Mudra loans by public sector banks, which also included regional rural banks, jumped to Rs 17,250.73 crore as on March 2019.
At the same time, the lenders have also been asked to ensure unhindered credit flow to micro, small and medium units.