Micro, Small and Medium Enterprises Sector (MSME) – Restructuring of Advances
By INSOL India Editorial Team Posted On : August 18, 2020
On August 6, 2020, the RBI extended the scheme permitted under its ‘Micro, Small & Medium Enterprises (MSME) Sector – Restructuring of Advances’ circular dated February 11, 2020. This was implemented taking into consideration the financial stress on the Micro, Small and Medium Enterprises sector owing to the COVID-19 pandemic, and in order to align the aforementioned guidelines with the ‘RBI Resolution Framework for COVID-19 Related Stress’. As a result, subject to conditions provided in the circular, existing loans to MSMEs can be restructured without suffering a downgrade in the asset classification.