IBC is generally above 50 cr, what about MSME

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IBC is generally above 50 cr, what about MSME 

Though any financial creditor can take steps to go to NCLT, banks generally go above 50 cr.

          Most of the MSME in NPA will be below 50 cr in loan liability. But I expect 1 cr jobs are at stake.

          If RBI, Central Govt. is keen to resolve above 50 cr, it works only financial statistical solution. But if our honourable PM says in Independence Day speech for job creation through Mundra loan, what about 1 cr jobs in MSME sick unit.

          Some banks are giving one-time settlements and in many cases, the land value of the unit has given much higher than OTS. There is no financing mechanism like a bridge loan etc. Can financial intermediatory look into?

          We are at fintech revolution and IIM A has got programme coming up for Bharat inclusion lab at the bottom of pyramid solution.

          Why this cannot be looked by NBFC as an asset class.

          A lot of things can be done by SIDBI, SEBI, Venture Capital funds, hedge funds etc. Why can special category not be created for MSME?

          Specialized mutual funds with various income tax incentives can be designed to invest for both growth capital needs of MSME and OTS for sick MSME.

          If the unit turns in NPA, is it the end of life? Can that entrepreneur will be respected by society and low.

          Policymakers should look into and design policy suitable to this segment.

          Happy Independence Day

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