On 11/2/2018, RBI scrapped all earlier scheme for NPA and on 14/2/2018, ETV had a very detailed panel discussion.
But nowhere the resolution process for MSME has been discussed or mentioned. Does it mean all earlier directives are in Vogue?
Honorable Minister Mr.Giriraj Singh made a statement in parliament of 80000cr NPA in MSME but 1cr jobs are at stake has not been mentioned which means capital cost of 1 job is 80000rs/-
The problem is at bottom of banking system i.e., with credit officer/branch managers. They do not want to report SMA0, SMA1, SMA2 A/C to their head office in time.
70 to 80% problems can be resolved if the RBI guidelines/directives are followed.
There is no penalty to the officer concerned if they do not follow guidelines.
Many cases I know that banks are making glaring mistakes and as an entrepreneur is weak, has to suffer.
Recently one MSME unit has taken his bank to high court making commissioner of industry and RBI as a party. If the high court gives stay, it will open up floodgates for the revival of sick MSME units.