NPAs of MSEs Need alert
Banking
Grouped
under unorganized sector, micro, small enterprises (MSEs) are suppliers to the
organized medium and large enterprises. With GST they would migrate from
unorganized to organized territory ere long.
Many
entrepreneurs have been wondering about their future as their working capital
cycles shake up. Credit to them has been on the continuous decline from the
banks. In spite of GoI guidelines of June 2015 and master directions of the
RBI, several deserving non-willful defaulters’ accounts have not been
revived/restructured. Zonal Committees for MSME stressed asset resolution continue
to make an apology of their presence. The remedy suggested by the RBI in its
master directions with SMA(0,1,2) proved worse than the disease going by the
analysis presented below based on the data in RBI Bulletin January 2017.
