RBI MSME loan restructuring plan to help borrowers, state-owned banks

With the high NPAs, the MSME sector has been facing difficulty in raising funds

Even as the Reserve Bank of India (RBI) allowed banks and non-banking financial companies (NBFCs) to undertake a one-time restructuring exercise of micro, small and medium enterprise (MSME) loans up to Rs 25 crore, which are stressed but not yet classified as non-performing assets, the poor quality of MSME loans in public sector banks, especially those under PCA, has turned out to be a cause for concern.

 
The central bank, in its Financial Stability Report, has flagged concerns regarding the deterioration in the asset