RBI to permit one-time restructuring of existing loans to MSMEs
Nagpur, Mar 13 (KNN) Reserve Bank of India (RBI) has decided to permit a one-time restructuring of existing loans to Micro, Small and Medium Enterprises (MSMEs) that are in default but standard as on January 1, 2019 without an asset classification downgrade.
This was decided in a programme that was organized with RBI, nationalized banks and industries associations on restructuring of advances to MSMEs by MSME-DI, here.
The meeting was organized with the intention to make aware the various nationalized banks, industries associations and MSME entrepreneurs about the guidelines of RBI.
Recently RBI has issued guidelines on restructuring of advances to MSMEs. The objective is to facilitate meaningful restructuring of MSMEs accounts that have become stressed. The main objective is to solve the problems of stressed MSMEs.
Manager of RBI, Anupam Singh in his address appreciated MSME-DI, Nagpur for taking initiative to create awareness about the guidelines issued by RBI for the stressed MSMEs.
He said, RBI is in forefront to support MSMEs from demand as well as supply side. To be eligible for the restructuring scheme, the aggregate exposure including non-fund based facilities of banks and NBFs to a borrower should not exceed Rs 250 million as on January 1, 2019 and restructuring is to be implemented by March 31, 2020.
Director of MSME-DI, P M Parlewar said, till date there was lack of awareness amongst the industries associations and entrepreneurs about the guidelines issued by RBI and assured that MSME-DI, Nagpur would publicize the circulars of RBI and create awareness to take this issue with banks, industries various associations and stressed MSMEs etc.
He said that MSME-DI and Laghu Udyog Bharati can work together on the issue to help MSMEs. Assessing the viability is very important while restructuring the accounts. He also spoke on Credit Facilitation Cell at MSME-DI, Nagpur.
The meeting was followed by interactive session with participation from representatives of nationalized banks, industries associations and entrepreneurs.(KNN/JM)