RBI should increase out of order [overdue] period to 180 days instead of 90 days for all loans upto Rs.50.00 lakhs, before account is declared NPA. This rule should also be made applicable to existing loan accounts which are declared NPA due to 90 day condition.Small borrowers face maximum problem due to slow down and systematic delays in getting payments. Banks normally are not sympathetic towards small borrowers unless they are well "connected" or are willing to keep bank officers "happy". They chase such small defaulters instead of big defaulters. This ends in closure of MSMEs and attention of industrialists is diverted to please banks rather than make more efforts for his business.
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