MSME |
In order to save the MSME sector from the effects of demonetisation and the GST implementation RBI allows restructuring of loan debt up to 250 million rupees. Reserve Bank of India has allowed a one-time restructuring of existing debt of up to 250 million rupees for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets. The Indian central bank in a statement said that to facilitate a meaningful restructuring of MSME accounts that have become stressed, the RBI has decided to permit a one-time restructuring of existing loans to MSMEs that are in default but `standard` as on 1st of January, 2019, without an asset classification downgrade. The decision will help the micro, small and medium enterprises (MSMEs) which are facing cash crunch in the wake of demonetization and GST implementation. To be eligible for the scheme, the aggregate exposure, including non-fund based facilities of banks and NBFCs, to a borrower should not exceed 250 million rupees as on January 1, 2019, and the restructuring has to be implemented by 31st of March 2020.
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