Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances

In view of the continued need to support the viable MSME entities on account of the fallout of COVID19, existing loans to MSMEs classified as 'standard' may be restructured without a downgrade in the asset classification, subject to the following conditions:

i.    The aggregate exposure, including non-fund-based facilities, of banks and NBFCs to the borrower does not exceed ₹25 crore as on March 1, 2020.
ii.    The borrower’s account was a ‘standard asset’ as on March 1, 2020.
iii.    The restructuring of the borrower account is implemented by March 31, 2021.
iv.    The borrowing entity is GST-registered on the date of implementation of the restructuring. However, this condition will not apply to MSMEs that are exempt from GST-registration. 

Please contact your branch for details.