Resolution Framework 2.0 – Resolution of COVID-19 related stress of Micro, Small and Medium Enterprises (MSMEs)

  • In view of the uncertainties created by the second wave of the Covid-19 pandemic, the Corporation has decided to extend the restructuring facility (with 01 moratorium for principal repayment) as per RBI guidelines to existing loans without a downgrade in the asset classification subject to the following conditions:
    • The borrower should be classified as a Micro, Small or Medium enterprise as on 31.03.2021.
    • The borrowing entity is GST registered on the date of implementation of the restructuring. However, this condition will not apply to MSMEs that are exempt from GST registration.
    • The aggregate exposure, including non-fund based facilities, of all lending institutions to the borrower, does not exceed Rs.25 crore as of 31.03.2021.
    • The borrower’s account was a ‘standard asset’ as on 31.03.2021.
    • If the borrower is not registered in the Udyam Registration portal, such registration shall be required to be completed before the date of implementation of the restructuring plan for the plan to be treated as implemented.
  • In respect of restructurings implemented as per the Paras above, asset classification of borrowers classified as standard may be retained as such, whereas the accounts which may have slipped into NPA category between 01.04.2021 and the date of implementation may be upgraded as ‘standard asset’, as on the date of implementation of the restructuring plan.
  • No additional interest shall be charged for the restructuring done under this general package.
  • Steps to be followed by the Customers to get the benefits.
    • The eligible customers shall submit the request to the concerned BO before 31.08.2021.
    • The decision on restructuring will be taken within 30 days of submitting the application.
    • The promoters may execute the supplementary agreement and the restructuring will be implemented within 30 days from the date of executing the agreement.