Credit and Finance for MSMEs: The Reserve Bank of India (RBI) on Thursday extended the restructuring of MSME debt until March 31, 2021, “provided the borrower’s account was classified as standard with the lender as on March 1, 2020.”
Credit and Finance for MSMEs: The Reserve Bank of India (RBI) on Thursday extended the restructuring of MSME debt until March 31, 2021, “provided the borrower’s account was classified as standard with the lender as on March 1, 2020,” according to the statement by the central bank on developmental and regulatory policies to boost liquidity support for financial markets. “Recognising the need for continued support to MSMEs’ meaningful restructuring, it has been decided that, in respect of MSME borrowers facing stress on account of the economic fallout of the pandemic, lending institutions may restructure the debt under the existing framework,” RBI said adding that this restructuring shall be implemented by March 31, 2021.
The government had earlier extended the one-time restructuring to December 31, 2020, from March 31, 2020, following Finance Minister’s Nirmala Sitharaman’s announcement in the budget that the government had asked the RBI to extend the same. “More than five lakh MSMEs have benefitted from the restructuring of debt permitted by RBI in the last year,” Sitharaman had said in her speech.
Source: Financial Express
