The Reserve Bank of India has asked the banks in the country to review their lending standards and to review their current policy. This review is to improve the level of lending to MSMEs in the country.

The RBI has proposed that banks measures to extend the credit lines and non-discretionary one-time settlement (OTS) collect, develop plans for the contributions and outstanding loans of MSMEs.

“The banks are risk averse since the beginning of the global economic crisis. Because of the fear of rising standards and a growing number of non-performing assets, banks have slowed lending to the MSME sector. Therefore, these initiatives through the RBI will help the MSME sector tide over liquidity problems, “said one Thaker, Director of Punjab National Bank in Kolkata.

The central bank also gave guidelines guidelines for rehabilitation of potentially viable sick units. It has asked the banks to avoid fees and loan accounts for a sustainable restructuring of MSMEs that NPAs.

The RBI has allowed banks to use these systems OTS MSME sector is based on the settlement of non-performing loans and commercial matters. would allow

“Such actions by the RBI units write their activities. In addition, the access of MSMEs to ensure adequate financial support from the banks to improve, agreed Nitin Maheswari, owners, synthetic Ambika Mills , a small textile company in Kolhapur.

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