Finance Minister Press Conference: Nirmala Sitharaman Says No Stressed MSME Will Be Declared As NPA
Nirmala Sitharaman will address the media after her meeting with heads of public sector banks. Watch and follow live updates here.
Watch: Nirmala Sitharaman Press Conference
Finance Minister Nirmala Sitharaman today instructed public sector banks to not classify any stressed medium and small enterprise as a non-performing asset till March 31, 2020. Sitharman said that the government has only invoked the RBI’s guidelines which are already existing.
Additionally, Sitharaman also announced a public outreach programme, a sort of loan fair, where retail customers can come and avail credit from banks and NBFCs.
Boosting Credit Before Festive Season
We want banks to extend as much liquidity as they can to customers in the lead up to the festive season.Nirmala Sitharaman, Finance Minister
No Stressed Asset To Be NPA: FM
Finance Minister Nirmala Sitharaman said that state-run banks have been instructed to not declare any stressed MSME as a non-performing asset, even after 90 days of a default. Lenders have been told to do this till March 31, 2020.
Banks already have this power under the RBI’s existing provisions, Sitharaman said, adding that the government has only invoked these guidelines.
Sitharaman added that a special dispensation for farmers and MSMEs will be considered.
Public Outreach By Banks And NBFCs
Finance Minister Nirmala Sitharaman announced a public outreach programme by banks and NBFCs in 200 districts till Sept. 29 where retail customers can come and avail loans.
“This will happen in a public place, hopefully a shamiana (ceremonial tent), and will be available for people to see,” she said.
Banks, NBFCs who have now benefited from liquidity given to them, and retail customers who’d come and claim credit, will all be there. Scheduled banks will now show that they are indeed pushing liquidity to the NBFCs or directly to the customer.Nirmala Sitharaman, Finance Minister
The next 200 districts will happen between Oct. 10 and Oct. 15.
Addressing NBFC Liquidity Problems
The finance minister said that a lot of discussions happened over enhancing liquidity for NBFCs.
“We did review as to actually what has happened in terms of liquidity moving from banks to NBFCs and from NBFCs to the customers who need the money. That took a lot of our discussion time,” Sitharaman said.
Banks have identified such NBFCs whom they can straight away lend. Some of that has already started happening, while some are in the pipeline.Nirmala Sitharaman, Finance Minister
Banks Already Moving In On Announcements: FM
The discussion was in great detail. Banks have started doing a lot on the announcements that were made and on some of the budgetary provisions.Nirmala Sitharaman, Finance Minister
