Restructuring of MSME debt will be implemented by March 31, 2021, RBI Governor Shaktikanta Das said.
The Reserve Bank of India (RBI) on August 6 permitted extending the restructuring of MSME debt until March 31, 2021 under the existing framework where MSMEs that were in default but ‘standard’ as on January 1, 2020 were being considered.
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Das said that the sector warrants further support as due to COVID-19 normal functioning and cash flows have continued to disrupt the normal that has led accentuated stress in the MSME sector.
"Accordingly, it has been decided that stressed MSME borrowers will be made eligible for restructuring their debt under the existing framework, provided their accounts with the concerned lender were classified as standard as on March 1, 2020," Das said.
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Restructuring of MSME debt will have to be implemented by March 31, 2021, RBI Governor Shaktikanta Das said.
(This is a developing story. Please check back for updates.)