‘RBI to facilitate restructuring of MSMEs’ stressed accounts’
   Date :13-Mar-2019


Business Bureau’,

A programme was organised with Reserve Bank of India, nationalized banks and industries associations on restructuring of advances to MSMEs by MSME-DI, Nagpur. Recently RBI has issued guidelines on restructuring of advances to MSMEs. The objective is to facilitate meaningful restructuring of  MSMEs accounts that have become stressed.  The main objective is to solve the problems of stressed MSMEs. RBI has decided to permit a one time restructuring of existing loans to MSMEs that are in default but ‘Standard’ as on January, 1, 2019 without an asset classification downgrade.

The meeting was organised with the intention to make aware the various nationalised banks, industries associations and MSME entrepreneurs about the guidelines of RBI. Anupam Singh, Manager of Reserve Bank of India, Dr Sudhakar Atre, Advisor to Laghu Udyog Bharati (LUB), Sunil Sirsikar, National Secretary of Laghu Udyog Bharati, P M Parlewar, Director of MSME-DI, Nagpur and Milind Barapatre, LDM, Bank of India, were present on the dais.
Anupam Singh in his address appreciated MSME-DI, Nagpur for taking initiative to create awareness about the guidelines issued by RBI for the stressed MSMEs. “RBI is in forefront to support MSMEs from demand as well as supply side,” he said. He informed that RBI had taken initiative to facilitate meaningful restructuring of MSME accounts that have become stressed.

He said, “To be eligible for the restructuring scheme, the aggregate exposure including non-fund based facilities of banks and NBFs to a borrower should not exceed Rs 250 million as on January 1, 2019 and restructuring is to be implemented by March 31, 2020.”

P M Parlewar said, till date there was lack of awareness amongst the industries associations and entrepreneurs about the guidelines issued by RBI and assured that MSME –DI, Nagpur would publicise the circulars of RBI and create awareness to take this issue with banks, industries various associations and stressed MSMEs etc. He said, MSME-DI and Laghu Udyog Bharati can work together on the issue to help MSMEs. Assessing the viability is very important while restructuring the accounts. He also spoke on Credit Facilitation Cell at MSME-DI, Nagpur.

Sudhakar Atre said, the 12 point MSME Support and Outreach Programme is a welcome step as it will boost the MSMEs. He said, 60 per cent of MSMEs are sick and about 25 per cent are under stress. The global recession has caused immense damage to MSME sector. He said, “It is high time Government should take up the matter with RBI and allow  relaxation in NPA norms to genuine borrowers.”
He thanked Director, MSME-DI for taking this initiative.
On the occasion, Sunil Sirsikar briefed about the Laghu Udyog Bharati, which is a national organisation for MSMEs. He said, “LUB is effectively solving the issues of MSMEs.” He assured all help from Laghu Udyog Bharati and hoped that MSME-DI would co-operate with them.

The meeting was followed by interactive session with participation from representatives of nationalised banks, industries associations and entrepreneurs.
Satish Khobragade, Senior Manager of Uco Bank said, “Uco Bank is very aggressively going on restructuring of accounts by giving the facility of technology and cash credit limit.” He cited one example of the unit where Uco Bank has helped them to manage their cash flow. Yogesh Wankhede, Senior Manger of Canara Bank said, Canara Bank has also restructured around 200 micro accounts. The meeting ended with vote of thanks by Manish V K Jha.