NEWS

As per RBI recent report, gross NPA have increased in MSME

DETAILS

WHAT IS A NON-PERFORMING ASSET

• Loans or advances that are in default or are in arrears on scheduled payments of principal or interest
• Debt is classified as non-performing, when the loan payments have not been made for a minimum period of 90 days

WHY – Sector is hit by Pandemic

WHAT HAS GOVERNMENT DONE

• Ministry of MSME launched the MSME Innovative Scheme (Incubation, Design and IPR) along with the MSME IDEA HACKATHON 2022
• RBI and the government introduced several measures including the Emergency Credit Line Guarantee Scheme (ECLGS) which provided Rs 3 lakh crore of unsecured loans to MSMEs and businesses
• RBI also extended the scheme of one-time restructuring of loans to MSMEs without an asset classification downgrade and permitted bank lending to NBFCs