RBI permits one-time restructuring of existing loans to MSMEs in standard on Jan 1

The Reserve Bank of India (RBI) Monday issued norms for restructuring loans defaulted by micro, small and medium enterprises.

The RBI permitted a one-time restructuring of existing loans to MSMEs that are in default but 'standard" as on January 1, 2019, the central bank said in a statement.

To be eligible for the scheme, the aggregate exposure, including non-fund based facilities of banks and NBFCs, to a borrower should not exceed Rs 25 crore as on January 1, 2019. The restructuring has to be implemented by March 31, 2020.

(With inputs from agencies.)