Mehta Panel submits 5 point plan to fight NPA
Today, all major papers have reported above.
I would congratulate all the panel members to come out with bold recommendations which are accepted by acting finance minister.
As we are concentrating on MSME only. I will raise few questions for all stakeholders to take note.
1. All loans below 50cr shall be resolved before 90 days.
But the question is if it is no resolution is coming, what is the fate?
2. The major reason for sickness in MSME is not taking timely decisions.
a. What kind of penalty will be imposed?
b. Where is the competent authority for resolutions and will they work in time bound manner?
3. The existing NPA accounts, can be operated? As of today, many banks more particularly SBI, has no mechanism to transfer cases from SAM branch to operational branch. So will these rules will be amended?
4. How will the awareness come to MSME for this actions?
5. Whether turnaround specialist will get involved? what will be their responsibility? Will the funds will be made available today or later? will it be predicted?