Stressed MSMEs will not be declared NPAs, they can approach PSBs to sort out finances: Nirmala Sitharaman

Nirmala Sitharaman said that the government has formed a task group on infrastructure to deploy the front-ended fund of Rs 1 lakh crore for five years.

FP Staff December 20, 2019 15:24:04 IST
Stressed MSMEs will not be declared NPAs, they can approach PSBs to sort out finances: Nirmala Sitharaman
  • Sitharaman said that there has been no interference by the government in the decision-making process of the banks

  • The non-banking finance companies today have saddled themselves with poor quality assets, she said

  • The finance minister said that the govt formed a task group on infrastructure to deploy front-ended fund of Rs 1 lakh crore for five years

Giving a major impetus to small businesses, Union Finance Minister Nirmala Sitharaman said that the stressed MSMEs will not be declared non-performing assets (NPAs) and provided for the restructuring of MSMEs debt.

Speaking at the annual conference of industry body ASSOCHAM, Sitharaman said that the micro, small and medium enterprises (MSMEs) can approach any public sector bank to sort out their finances.

She said that the banks have to be professional on decisions and the banks must move forward, be nimble

Stressed MSMEs will not be declared NPAs they can approach PSBs to sort out finances Nirmala Sitharaman

File image of Union Finance Minister Nirmala Sitharaman. PTI

The finance minister said that the government has formed a task group on infrastructure to deploy the front-ended fund of Rs 1 lakh crore for five years.

Saying that the public sector banks (PSBs) must move more liquidity out in the system, Sitharaman said that there has been no interference by the government in the decision-making process of the banks.

"Hold it against the PSBs that they have not passed on benefits of rate cuts to the customers," Sitharaman said.

The non-banking finance companies (NBFCs) today have saddled themselves with poor quality assets, she said.

"The government has given a provision for pooling the NBFC assets and lend to them," Sitharaman said.

The finance minister recalled that together with banks and the Reserve Bank of India (RBI) the government looked at where the liquidity was stuck.

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