- The Reserve Bank of India’s (RBI’s) restructuring package deal for small businesses announced last month will assist recast Rs 1 lakh crore of loans for 7 lakh eligible micro, small and medium enterprises (MSMEs).
- All of them may be restructured till March 2020 with out downgrading the asset and Rs 1lakh crore price loans will get restructured.
- The scheme announced by RBI is a one-time scheme whereby a loan tenor and rate of interest may be revised with out classifying the asset as a NPA.
- The facility is available for traditional advances of as much as Rs 25 crore solely.
The scheme will assist unencumber extra assets which can gasoline demand and create additional alternatives within the trade.
- The restructuring have to be carried out by March 31, 2020. Banks might want to make a provision of 5% in the direction of these restructured loans. Every bank/NBFC should formulate a coverage for this scheme with board approval.
- These MSMEs that aren’t exempt from GST will have to be registered on the GSTN on the date on restructuring.