RBI removes minimum loan limits for MSMEs for classification under priority sector

Mar 05, 2018 | by Avantis RegTech Legal Research Team

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The Reserve Bank of India vide notification dated March 01, 2018 has decided to remove the currently applicable loan limits of ₹ 5 Crore and ₹ 10 Crore per borrower to Micro/ Small and Medium Enterprises (Services) respectively, for classification under priority sector.

Accordingly, all bank loans to MSMEs, engaged in providing or rendering of services as defined in terms of investment in equipment under MSMED Act, 2006, shall qualify under priority sector without any credit cap.

[RBI/2017-18/135 FIDD.CO.Plan.BC.18/04.09.01/2017-18]

URL: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT13505C7E1D7BBDB482EACCFD1F3FC85575D.PDF


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