Restructuring of advances of MSME sector

Feb 28, 2019 | by Avantis RegTech Legal Research Team

The Reserve Bank of India (RBI) on February 22, 2019, has passed a Circular for restructuring of advances of Micro, Small and Medium Enterprises (MSMEs) sectors, vide Circular dated January 01, 2019. 

The Para 1(iii) of Circular of January, provides a condition for restructuring of existing loan of MSMEs without a downgrade in the asset classification that is:

        “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”. 

This Circular has brought into notice to clarify the eligibility for restructuring without GST-registration will be determined on the basis of exemption limit obtaining as on January 01, 2019.

[Circular No.: DBR.No.BP.BC.26/21.04.048/2018-19]

Click here to download the Circular.


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