Solution to the Crisis of NPAs and Delayed Payment Sufferings of MSMEs

Non-performing assets (NPA) crises have made the Indian banking industry worried and billions of rupees in India have gone in trouble. But this entire scenario ad worst affected the MSME entrepreneurs whose banking have been affected very badly due to this. Badish Jindal, National President of All Industries & Trade Forum (AITF) wrote a letter to Prime Minister Narendra Modi suggesting a way forward for this situation.

He wrote and suggested that the "Credit Information Bureau Limited (CIBIL) can check the financial status of any individual or company. The banks have access to get the CIBIL record of any company or individual. But such data is unavailable for the public. Due which the sellers are unable to know about the financial status of their buyers, which results in defaulting of payments in millions of cases."

He said that even banks hide the NPAs and sickness information of the customers, so in the absence of such information, the trade and industry are unable to get the true information of the financial status of their buyers.

In the absence of information such defaulters also play foul with taxation, EPFO, ESIC and other departments, he added.

Quoting an AITF data, he wrote it is found that 50% of such NPA units are deliberate defaulters and beside banks, they did the equal fraud with their suppliers and banks, by avoiding taxes, and other labour liabilities.

He suggested that the CIBIL score of all individuals and companies be made public, along with the CIBIL, the bank sickness score and NPA data should also be made available to public.