Banks not to declare stressed MSMEs as NPAs till March 31 next year: Sitharaman
Sitharaman, who reviewed the performance of banks with the top management of public sector banks, told reporters the banks have been requested to sit with the stressed-asset MSMEs (Micro, Small and Medium Enterprises) and work with them to get them out of the situation.
Finance Minister Nirmala Sitharaman on Thursday said banks have been told that no stressed-asset MSME should be declared a non-performing asset (NPA) till March 31 next year.
Sitharaman, who reviewed the performance of banks with the top management of public sector banks, told reporters the banks have been requested to sit with the stressed-asset MSMEs (Micro, Small and Medium Enterprises) and work with them to get them out of the situation.
"We have told the banks that till March 31, 2020, no stressed-asset MSME will be declared an NPA. We have also requested that the banks should make an effort to sit with such stressed-asset MSMEs and work it out with them to get them out of that situation," she said.
Replying to a query, the minister said it was a special drive to see "what is we need to do" for the MSMEs which are stressed.
She also said banks have this power under RBI guidelines and they have been asked to invoke them.