Reserve Director Satish Marathe wrote to PM on Thursday urging him to consider rescheduling of loan accounts to help the staggering industry, particularly MSMEs in the wake of Covid lock-down.
“These are exceptional times and the need is to take exceptional steps,” Marathe said in his letter to the Prime Minister.
The Indian economy was already hit by an economic slowdown brimming to the recession when the Covid pandemic struck. The deadly combination of slow down and lockdown could not be met just by injecting Liquidity, reducing interest rates, providing guarantees through SPVs/SIDBI, relaxing delinquency norms in the current year.
“We need to seek the active involvement of our banking sector to rebuild the economy. If Advances Accounts get classified as NPAs, due to both lockdown and slowdown, chances of revival of such accounts would be bleak, as bank Officials continue to be apprehensive of possible future investigations by CVC, CAG & CBI,” Satish Marathe said.
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