MSME loans restructuring to be completed by March 15, says FM

New Delhi, Feb 27 (KNN) Union Finance Minister Nirmala Sitharaman has said that the restructuring of Micro, Small and Medium Enterprise (MSME) loans by banks will be done by March 15.

The Finance Minister, while briefing media after a meeting with Public Sector Undertaking (PSU) Banks in Delhi, on Wednesday, said, "So far, a total of 5.53 lakh MSME accounts have been identified and out of which 5.28 lakh entities have been restructured and by March 15, every MSME request must be cleared.

''Banks have given us information on how many MSMEs restructured reached out, their loans and everything. Few MSMEs that are pending before them, we have requested them to clean out all by March 15," she added.

The Reserve Bank of India had earlier this month extended the loan restructuring timeline for MSME accounts from earlier March 31, to December 31, 2020, without downgrading the asset classification to standard accounts.

"As soon as the parliament session is over, I have requested the banks to make arrangements and go to one district and the particular branches in that district on a particular day. That one day all the staff will come over after the banking hours to address the grievance of the bank... what additional support is required to get the momentum going", she said.

In her budget speech, Sitharaman had said that over 5 lakh MSMEs have benefited from the restructuring of debt permitted by the RBI in the last year.

To further address the working capital issue among MSMEs, Sitharaman had proposed a subordinate debt scheme for MSMEs wherein the debt will be provided by banks.

''This debt would be counted as quasi-equity and would be fully guaranteed through the 27 Credit Guarantee Trust for Medium and Small Entrepreneurs,” the minister had said in her budget speech.

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