All Scheduled Commercial Banks have also been advised to review and put in place MSE Loan policy, Restructuring / rehabilitation policy and Non-discretionary One Time settlement scheme for recovery of nonperforming loans, duly approved by their Board of Directors. 35. An exit route for non-viable units is necessary to manage sickness. The present mechanism available in India for MSMEs is archaic.
Business failure in India is viewed as a stigma, which adversely impacts individual creativity and development in the country. The existing legislations may have to be toned up so as to provide for efficient liquidation of nonviable businesses. 36. To ensure competitiveness of the MSEs, it is essential that the availability of infrastructure, technology and skilled manpower are in tune with the global trends.