Government is working with RBI on Industry's need for restructuring of loans due to the impact of Coronavirus: FM Sitharaman

Union Finance Minister Nirmala Sitharaman said that the government is working with RBI on the Industry's need for the restructuring of loans due to the impact of COVID-19. The Minister was addressing the National Executive Committee Meeting (NECM) of the Federation of Indian Chambers of Commerce and Industry (FICCI) on Friday.

Ministry of Finance in a tweet today said, "FM Smt. @nsitharaman said that the Govt is working with @RBI on the Industry's need for the restructuring of loans due to the #COVID19 impact while addressing the National Executive Committee Meeting (NECM) of FICCI today."

Ms. Sitharaman asserted that Banks cannot refuse credit to MSMEs covered under the emergency credit facility and any aberration in such cases must be brought to notice. She was responding to the concerns raised by the FICCI members on the difficulties faced by the MSMEs in taking loans under the Emergency Credit Guarantee Scheme.

On the suggestion for creating an institution to handle the emerging credit requirements of the industry, the Finance Minister informed that the government is working on the plan to create a Development Finance Institution in the country. She said the details will be shared after formalisation of the plans.

Ms. Sitharaman informed that the decision on reducing GST rates on the healthcare and other products will be taken by the GST Council. She also affirmed that the Finance Ministry is working with RBI on the demand of the hospitality sector for extension of moratorium or restructuring of the loans.