10 May 2021, 17:41 — 2 min read
The Reserve Bank of India (RBI) has implemented “Resolution Framework 2.0” on May 5, 2021, with respect to Covid-19 related stress of MSMEs. The facility for restructuring of existing loans may be extended subject to the following conditions:
1. The borrower should be MSME as on 31st March 2021.
2. The borrower should be GST-registered except for those MSMEs that are exempt from GST-registration.
3. The aggregate exposure, including non-fund based facilities, of all lending institutions to the borrower does not exceed ₹25 crore as on March 31, 2021.
4. The borrower’s account was a ‘standard asset’ as on March 31, 2021.
5. The borrower’s account was not restructured in terms of the circulars DOR.No.BP.BC/4/21.04.048/2020-21dated 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).
6. The borrower should be registered in the Udyam Registration portal.
Please click on the following link, so as to get the detailed information on the conditions of Resolution Framework 2.0: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12086&Mode=0
Please feel free to contact us on email@example.com , if any further clarification is required on the Resolution Framework 2.0.
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