RBI under new governor Shaktikanta Das, announced a major policy decision on the first day of the new year. The central bank has issued guidelines for restructuring loans up to Rs 25 crore for the MSMEs which have defaulted on payment. Restructuring package for these companies was one of the sore points between the RBI and the government. How significant is this move and is it enough for the sector facing a cash crunch in the wake of demonetisation and GST implementation? Mythili Bhusnurmath, Consulting Editor, ET Now helps understand the policy. ET Explains..
RBI under new governor Shaktikanta Das, announced a major policy decision on the first day of the new year. The central bank has issued guidelines for restructuring loans up to Rs 25 crore for the MSMEs which have defaulted on payment. Restructuring package for these companies was one of the sore points between the RBI and the government. How significant is this move and is it enough for the sector facing a cash crunch in the wake of demonetisation and GST implementation? Mythili Bhusnurmath, Consulting Editor, ET Now helps understand the policy. ET Explains.
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We must pay more attention to MSMEs given their key role in the global economy.
For India, MSME means Maximum Support to Micro, Small and Medium Enterprises.
We have been working with our MSME sector to adopt the ethos of 'Zero Defect' and 'Zero Effect' on the environment.
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