As per RBI report, the packages included in the restructuring scheme for micro-small and medium enterprises (MSMEs) has helped them stay afloat during difficult times.
The restructuring scheme existed even before the pandemic which was introduced to help borrowers in micro-small and medium enterprises (MSME) category manage the effects of economic slow-down.
However, in the wake of Covid-19 pandemic, the Reserve Bank of India had implemented a much-elaborated debt recast scheme to soften the blow for hard-hit borrowers.
It included additional time for repayments, more funding support, and conversion of part of working capital into term credit.
All these packages extensively help MSME accounts through the worse times, hence the economic recovery and timely payments by customers will have a greater impact on their future.
There are total 2,451, 929 number of accounts out of which 8.51 per cent are eligible account recast and the recast loan amount is INR 116, 332 which is 7.67 in per cent.
It is to note that the statistics is inclusive of public, private and foreign sector banks.