New Delhi: In a public outreach exercise, Finance Minister Nirmala Sitharaman on Thursday said public sector banks will organize credit "shamiana meetings" in 400 districts beginning October 3 to provide loans to NBFCs and retail borrowers, including homebuyers and farmers and banks, won't declare any stressed loan account of MSMEs as NPA till March 2020 and will work on recasting their debt.
"There already exists a circular from the Reserve Bank that provides for stressed loan accounts of MSMEs not being declared non-performing assets (NPAs)," she said.
Finance and banking secretary Rajeev Kumar said the Prudential Framework for Resolution of Stressed Assets of June 7 is existing and banks have been asked to activate the circular while dealing with MSME stressed loan accounts.
"PSBs will focus on giving loans to the 'RAM' category -- retail, agriculture, and MSMEs," Sitharaman said at a press conference after meeting PSU bank heads.
She said the idea is to ensure maximum credit disbursal during the festive season. The aim is bringing all together at one place where retail customers can come and avail credit from banks and NBFCs.
"We want banks to extend as much liquidity as they can to customers in the lead up to the festive season. Banks, NBFCs who have now benefited from liquidity given to them, and retail customers who would come and claim credit, will all be there. Scheduled banks will now show that they are indeed pushing liquidity to the NBFCs or directly to the customer," she said.
The open house public meetings involving banks, NBFCs and retail buyers will be held in two tranches. The first will be held between October 3 and 7 in 200 districts, while the remaining 200 will be covered October 11 onwards.
For every existing customer, banks will have to bring in five new customers, the minister said, adding that there would not be any hard and fast rule. Also, banks have identified some NBFCs that they can lend to so that liquidity and credit is made available to those seeking money, she said.
She also said that several MSMEs want the one-time settlement of their outstanding dues, which should be settled expeditiously by the banks. (IANS)