Finance Minister Nirmala Sitharaman on Friday said that banks cannot refuse credit to Micro Small and Medium Enterprises (MSMEs) covered under the emergency credit facility and warned of stringent action, if any bank found doing so.  

Speaking at FICCI's National Executive Committee Meeting, the Finance Minister said, "If banks refuse such credit, it must be reported and she will look into it".  

"Every step which is being announced and taken to deal with the current situation is being done after exhaustive consultation with the stakeholders and industry experts", she added.

Sitharaman also assured that the focus is on restructuring and the Finance Ministry is actively engaged with RBI on this.

Addressing the concerns of the hospitality sector, Sitharaman said that the government does understand the sector's requirements on the moratorium extension or restructuring and it is working with the reserve bank on the same.

The minister further said that reciprocal arrangements are being asked with the countries with which India has opened up its markets adding, "reciprocity is a very critical point in India's trade negotiations".

She also said that the work is going on at the Development Finance Institution, however, what shape it will take will be known shortly.