Interest Subvention Scheme for MSMEs

Feb 22, 2019 | by Avantis RegTech Legal Research Team

Reserve Bank of India (RBI) on February 21, 2018, has passed a Notification to pass a new scheme for Ministry of Micro, Small and Medium Enterprises (MSME), which was previously announced by the Government on November, 2018, that is “Interest Subvention Scheme for MSMEs”. MSME sector plays an important role in building up of a strong and stable economy. The Government this initiative for ease of doing business, to credit an access to market, technology upgradation, security for employees. Small Industries Development Bank of India (SIDBI) is the single national level nodal implementation agency for the scheme. The Scheme aims at encouraging both manufacturing and service enterprises to increase productivity and provides incentives to MSMEs which helps in formalization of economy, while reducing the cost of credit. The Scheme will be in operation for a period of two financial years FY 2019 and FY 2020. All MSMEs who have a valid Udyog Adhar Number (UAN) and valid GSTN number will be eligible as beneficiaries under the Scheme.

[Notification No. RBI/2018-19/125]



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