You are here: Home > MSME

30/11/2020 05:28pm

SIDBI launches asset restructuring web module to help MSMEs take benefit of RBI guidelines

image SIDBI launches asset restructuring web module to help MSMEs take benefit of RBI guidelines

New Delhi, Nov 30 (KNN) In a bid to help Micro, Small and Medium Enterprises (MSME) to take benefit of Reserve Bank of India’s (RBI) MSME restructuring guideline, Small Industries Development Bank of India (SIDBI) has launched a web portal

With the help of this Do-It-Yourself (DIY) asset restructuring web module, MSMEs will be able to prepare restructuring proposals by keying in only the most essential data of their past financials, future projections and restructuring requirements. The proposal prepared can be submitted online to the banks and reports can also be generated for submission to banks through email or in hard copies.

Speaking on the occasion, Manoj Mittal, Deputy Managing Director of SIDBI said, “We have developed this module in collaboration with our associate, India SME Asset Reconstruction Company Limited (ISARC), which is an Asset Reconstruction Company (ARC). This step would aid in the economic recovery and complement the benefits of far reaching initiatives announced by the Government of India in this direction. To provide handholding support to MSME units seeking restructuring, credit counsellors have been placed in 20 MSME cluster locations in partnership with local MSME industry associations. In case the need arises, the number of such locations could also be increased.”

The portal has been tested by some of the leading banks for use by their MSME clients. Punjab National Bank and Indian Bank have already agreed to accept restructuring proposals generated by their MSME customers using this module.

A Memorandum of Understanding (MoU) to this effect was signed on Monday between SIDBI and Indian Bank in the presence of Padmaja Chunduru, MD & CEO, Indian Bank.

Though the RBI has extended the scope of ongoing one-time restructuring of MSME advances to support recovery of viable MSME entities undergoing COVID-19 related stress till March 31, 2021, many MSMEs find it difficult to prepare the restructuring proposals on their own and this DIY kit provides them with a handy tool to do this intuitively based upon their understanding of business.

The module makes it easier to compare different options of restructuring as well as reduces the turn-around time. ARM-MSME is being offered free of cost as part of SIDBI’s developmental initiatives.


Related Articles


    Be first to give your comments.

Write a Comment

Your email address will not be published.
Required fields are marked *