FM asks PSBs to review MSME credit facilities, adopt corrective measures
The Finance Ministry has instructed the Public Sector Banks (PSB) chief executives to assign a chief general manager, or a general manager-level officer to review credit facilities provided to micro, small and medium enterprises (MSMEs). The bank will also have to take corrective measures to ensure that the firms get adequate funds.
A statement released by the Ministry said, “The heads of all PSBs have also been asked that all sincere efforts should be made so that during the process of formalisation, the MSMEs may not suffer in want of credit which should be available to them as per the extant guidelines.”
It may be noted that earlier this year, the RBI allowed a one-time restructuring scheme for MSMEs with an exposure of Rs 25 crore to be implemented by banks by March 31, 2020.