RBI Reviews Economic & Financial Issues with MSMEs

RBI holds the 52nd Empowered Committees Meeting for MSMEs of NCT of Delhi, through virtual mode due to COVID -19 on 28th September 2020. The meeting was conducted through the Cisco Webex application.

The Meeting was chaired by Shri. Ajay Kumar, Regional Director, Reserve Bank of India, New Delhi. The Regional Director RBI reviewed the status of loan release and recovery with the Banks.

As the period of review was Apr-Jun 2020, expectedly the performances were dismal. Banks like SBI shown a drop in loan disbursement of 20 percent and an identical position of NPA. Interestingly private Banks, particularly Axis Bank showed 20 per cent YoY increase in loan sanction and also single digit NPA.

Industry forums and associations have already written to RBI to insist and followup with banks to restructure pending loan accounts at the earliest to prevent their slipping into permanent NPAs.