Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More
you are here: HomeNewsBusiness

RBI Governor Shaktikanta Das announces COVID-19 measures for SMEs: All you need to know

Borrowers (individuals and MSMEs) with exposure up to Rs 25 crore who did not avail earlier facilities and where loans are standard as on March 31, 2021 will be eligible for restructuring in the second round till September 2020.

May 05, 2021 / 12:55 PM IST
Some of the measures announced were for small borrowers, Small Finance Banks (SFBs), and Medium, Small and Micro Enterprises (MSMEs).(Image: Shutterstock)

Some of the measures announced were for small borrowers, Small Finance Banks (SFBs), and Medium, Small and Micro Enterprises (MSMEs).(Image: Shutterstock)

Reserve Bank India (RBI) Governor Shaktikanta Das made an unscheduled address on May 5, announcing some relief measures amid the second wave of the COVID-19 pandemic.

Some of the measures announced were for small borrowers, Small Finance Banks (SFBs), and Medium, Small and Micro Enterprises (MSMEs).

Also read: RBI Governor Shaktikanta Das launches second round of loan restructuring, other relief measures to counter Covid second wave

> Special Long-Term Repo Operations (SLTRO) for SFBs

Das said a special three-year long-term repo operations (SLTRO) of Rs 10,000 crore at repo rate for the SFBs, will be deployed for fresh lending of up to Rs 10 lakh per borrower. This facility will be available till October 31, 2021.

Close

> Loan restructuring 2.0

Borrowers (individuals and MSMEs) with exposure up to Rs 25 crore - who did not avail earlier facilities and where loans are standard as on March 31, 2021 - will be eligible for restructuring in the second round till September 2021.

> Credit to MSME entrepreneurs

"In February 2021 Scheduled Commercial Banks were allowed to deduct credit disbursed to new MSME borrowers from their net demand and time liabilities (NDTL) for calculation of the cash reserve ratio (CRR)," the RBI Governor said.

This facility, available for exposures up to Rs 25 lakh and for credit disbursed, has now been extended to December 31, 2021 from October 21.
Moneycontrol News
first published: May 5, 2021 12:29 pm

stay updated

Get Daily News on your Browser
Sections