ENA Economy 2019-01-02 06:00:42 <p><strong>New Delhi, Jan 2 (KNN)</strong> The Reserve Bank of India (RBI) allowed a one-time restructuring of existing debt up to Rs 25 crore for Micro, Small and Medium Enterprises (MSMEs) which have defaulted on payment.</p> <p> In addition, the loans given to them have continued to be classified as standard assets, RBI said in a statement.</p> <p>To facilitate 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 January 1, 2019, without an asset classification downgrade, the central bank said in a statement. </p> <p>The decision will help MSMEs which are facing cash crunch in the wake of demonetization and GST implementation.</p> <p>To be eligible for the scheme, the aggregate exposure, including non-fund based facilities of banks and NBFCs, to a borrower should not exceed Rs 25 crore as on January 1, 2019.</p> <p>Further, the restructuring has to be implemented by March 31, 2020. </p> <p>At the crucial board meeting, there was a detailed presentation by Financial Services Secretary Rajiv Kumar on the cash crunch being faced by the MSME sector.</p> <p>RBI board member, S Gurumurthy also tweeted on the step taken by RBI, A major step for MSMEs with a total liability up to 25 crore suffering from past issues and illiquidity, though delayed. Congratulations RBI for the restructure circular. </p> 21691 https://knnindia.co.in/news/newsdetails/economy/rbi-allows-one-time-restructuring-of-existing-debt-up-to-rs-25-crore-for-defaulted-msmes 2019-01-02 06:00:42 knnindia.co.in