Finance Minister Nirmala Sitharaman said on Friday that the government was working with the Reserve Bank of India on restructuring of loans and extension of moratorium on term loans. Banks cannot refuse to give loans to MSMEs under the Emergency Credit Line Guarantee Scheme and any denials should be reported, she said.
The focus is on restructuring. The Finance Ministry is actively involved with the RBI on this. In theory, the idea that restructuring may be required is well taken, ”he said in a conversation with FICCI, according to a statement released by the Industry Chamber.
On the concerns raised by members of FICCI in raising loans under ECLGS, he said that “Banks cannot deny credit to MSMEs covered under the insurance facility. If forbidden, such examples should be reported. I will look into it. ”Banks have approved 43.5 percent of the Rs 3 lakh crore targeted under the ECLGS for vigorous MSMEs, official data show.