RBI to Meet NBFCs on MSMEs

A day after the Reserve Bank allowed restructuring defaulted loans of up to Rs 25 crore taken by micro, small and medium enterprises (MSMEs), its Governor Shaktikanta Das said he will hold talks with representatives from the MSME and non-banking financial companies (NBFCs) next week.

"Will hold meetings with MSME associations and representatives of NBFCs next week," Das said in a tweet.

On Tuesday, the RBI permitted a one-time restructuring of existing loans that are in default but "standard" as on January 1, 2019, without an asset classification downgrade.

Support for MSMEs was amongst the many contentious issues between the RBI and the government. It was also widely speculated to be the main reason for the abrupt resignation of previous RBI Governor Urjit Patel last month.

Recently, the newly appointed RBI Governor also met chiefs of public sector and private sector banks to know their concerns and issues affecting the lenders.