New Delhi, Feb 11 (KNN) The Reserve Bank of India’s (RBI's) restructuring package for small businesses announced last month will help recast Rs 1 lakh crore of loans for 7 lakh eligible micro, small and medium enterprises (MSMEs), said a top government official.

Speaking at a post-budget interactive meeting with industry captains, Secretary of Department of Financial Services (DFS), Rajiv Kumar said, “As many as 7 lakh MSME units need restructuring.”

They all can be restructured till March 2020 without downgrading the asset and Rs 1lakh crore worth loans will get restructured, he added.

He further stated that the scheme would help free up additional resources, which would fuel demand and create further opportunities in the industry.

As a New Year gift to MSMEs, RBI decided to permit a one-time restructuring of existing loans to MSMEs that are in default but 'standard' as on January 1, 2019, without an asset classification downgrade.