RBI manna for MSME sector can spur demand, says CRISIL SME Tracker

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) at its February 6 meeting made several announcements to spur credit flow to the micro, small and medium enterprise (MSME) sector.

First, the Union Budget for 2020-21 had extended the option of one-time restructuring of MSME loan accounts without classifying these as non-performing assets (NPA) by one more year, until March 31, 2021. The benefit would be available to MSME loans that were in default but “standard” as on January 1, 2019. 

Recognising the importance of the sector that contributes over 28 per cent of the gross domestic