Govt may seek RBI move to relax NPA norms to cushion MSMEs from war impact
Mint·2h ago·Neutral
What Happened
The Indian government plans to request the Reserve Bank of India to relax non-performing asset and special mention account classification timelines to support micro, small and medium enterprises affected by West Asia conflict. The proposed ₹2.5 trillion relief package includes credit guarantees. Officials from multiple departments met Wednesday to discuss measures. MSMEs contribute 30.1% to India's GDP and account for 35.4% manufacturing output and 45% merchandise exports.
Key Entities
Indian GovernmentReserve Bank of IndiaMSMEsWest Asia ConflictDepartment of Financial ServicesMSME Ministry₹2.5 trillion Relief PackageNPA ClassificationSpecial Mention Accounts