Resolution Framework - 2.0: Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs) - Revision in the threshold for aggregate exposure - ଆରବିଆଇ - Reserve Bank of India
Resolution Framework - 2.0: Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs) - Revision in the threshold for aggregate exposure
RBI/2021-22/47 June 4, 2021 All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks) Madam / Dear Sir, Resolution Framework - 2.0: Resolution of Covid-19 related stress of Micro, Small and A reference is invited to the circular DOR.STR.REC.12/21.04.048/2021-22 on “Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” dated May 5, 2021. 2. Clause 2 of the above circular specifies the eligibility conditions for MSME accounts to be considered for restructuring under the framework, which inter alia include sub-clause (iii) which states that the aggregate exposure, including non-fund based facilities, of all lending institutions to the MSME borrower should not exceed ₹25 crore as on March 31, 2021. 3. Based on a review, it has been decided to enhance the above limit from ₹25 crore to ₹50 crore. 4. Consequently, clause 2(v) would stand modified as under: “(v) The borrower’s account was not restructured in terms of the circulars DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020; DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020; or DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019 (collectively referred to as MSME restructuring circulars) or the circular DOR.No.BP.BC/3/21.04.048/2020-21 dated August 6, 2020 on “Resolution Framework for COVID-19-related Stress.” 5. All other provisions of the circular remain unchanged. Yours faithfully, (Manoranjan Mishra) |