Lok Sabha Question No. 26 (UNSTARRED), answered on 2020-09-14
Subject: Loans to MSMEs
Ministry: FINANCE
Asked by: Dhanush M Kumar, C.N. Annadurai, Gautham Sigamani Pon, Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MNISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION NO. 26

TO BE ANSWERED ON 14th SEPTEMBER, 2020 BHADRAPADA 23, 1942 (SAKA)

## LOANS TO MSMEs

26: Shri Dhanush M. Kumar;

Shri C.N. Annadurai;

Shri Gautham Sigamani Pon;

Shri Kanumuru Raghu Rama Krishna Raju;

## Will the Minister of FINANCE be pleased to state:

- (a) the details of success achieved by the Government after launching an online lending portal with   majority   ownership of the six Public sector Banks   (PSBs) Financial Institutions   (FIs) with their associated   companies to facilitate in   principle approval for loans to Micro, Small and Medium Enterprises (MSMEs) and the details of the loans approved each of the last three years and the current year; along during
- (b) whether the RBI has permitted an one time restructuring of existing MSME loans that had become stressed due to the COVID-19 pandemic;
- (c) if so, the number of PSBs that have restructured loans to MSMEs alongwith the quantum of amount involved and the PSB bank that is having highest share therein; and
- (d) whether the Government is considering to extend the restructuring window for & year by requesting the RBI to delay the recognition of stress in the segment due to pandemic, if sO, the details thereof and the response of the RBI in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FNNANCE

## (SHRI ANURAG SINGH THAKUR)

- (a): Since the launch of the online portal for facilitating in principle approval of loans to Micro Small and Medium Enterprises viz psbloansinS9minutes.com, on November; 2018,a total of 2,54,965 loans involving an amount of Rs. 79,642 crore have granted in lending 2nd been

| Financial Year (FY)       | No_of Accounts   | Amount (Rs. Crore   |
|---------------------------|------------------|---------------------|
| 2018-19                   | 1,40,518         | 43,109              |
| 2019-26                   | 1,04,761         | 32,882              |
| 2020-21 (till 31.08.2020) | 9,686            | 3,651               |

(b) to (d) Reserve Bank of India (RBI) permitted a one-time restructuring of loans to MSMEs with an aggregate exposure of up to Rs 25 crore; that were in default but standard ~$ on January 2019, and continue to be standard as on the date of implementation of restructuring; without an asset classification downgrade, subject to certain conditions. The scheme was extended vide RBI's circular dated February 1l, 2020 for MSME accounts that were in default but standard as on January 1, 2020. In view of the continued need to support viable MSME entities o account of the fallout of Covid-19 pandemic, the scheme has been further extended by RBI to cover loans to MSMEs that were standard' aS on March 1, 2020 vide its   circular  dated August 6, 2020. The restructuring window under the revised for implementation of the restructuring In addition, on 6th August; 2020, RBI has also provided a window under the "Prudential Framework on Resolution of  Stressed Assets   dated June 7, enable   lenders to implement a resolution plan in respect of eligible corporate exposures exceeding Rs. 25 crore; which were not more than 30 days due as on 01.03.2020 and where the stress is on account of Covid-l9 pandemic, to be invoked than December; 2020 and implemented within 180 days thereafter: plan. past 31st so far restructured loans of eligible MSMEs under RBI $ aforesaid one-time restructuring scheme, amounting to Rs. 31,132 crore. State Bank of India has restructured the highest quantum amounting to Rs. 6284 crore.

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