Sun Nov 03 15:10:34 UTC 2024: ## MSMEs Demand Strict Enforcement of 2015 Notification to Protect Businesses
**KOCHI, November 3, 2024:** The National MSME Borrowers Association has called for strict enforcement of a 2015 notification that protects MSME businesses from being classified as Non-Performing Assets (NPAs) by banks.
The Association, representing 90% of India’s entrepreneurs, emphasized the importance of this notification, stating that it would eliminate the need for recovery actions and ensure the financial stability of MSMEs.
The 2015 notification mandates that banks provide credit facilities to MSMEs without requiring collateral, and penalizes buyers who delay payments to MSMEs with interest rates three times the bank rate. However, the Association claims that these measures remain largely unenforced.
Despite a Supreme Court ruling against classifying MSME loan accounts as NPAs without proper procedure, MSMEs continue to face threats of asset dispossession due to banks’ reluctance to implement the judgment, allegedly favoring the interests of Asset Reconstruction Companies.
The Association has urged authorities to take immediate action to ensure the full implementation of the 2015 notification and the Supreme Court ruling, safeguarding the interests of India’s vital MSME sector.
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