MSMEs Threshold
for Aggregate Exposure Limit Enhanced from ₹25 crore to ₹50 crore
The Reserve Bank of India (RBI) on June 04, 2021 has
issued the Resolution Framework - 2.0: Resolution of Covid-19 related stress of
Micro, Small and Medium Enterprises (MSMEs) – Revision in the threshold for aggregate
exposure.
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 Rs.25 crore as on March 31,
2021.
Based on a review, it has been decided
to enhance the above limit from Rs.25 crore to Rs. 50
crore.
[RBI/2021-22/47
- DOR.STR.REC.21/21.04.048/2021-22 dated 4 June 2021]
Sub:
Resolution Framework - 2.0: Resolution of Covid-19 related stress of Micro,
Small and Medium Enterprises (MSMEs) – Revision in the threshold for aggregate
exposure
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.