RBI revises threshold for exposure limits of borrowing in Resolution Framework-2 for MSMEs
In August 2020 RBI, in view of the need to support the MSME entities on account of the fallout of Covid19 and in view of the Resolution Framework for COVID 19 – related Stress permitted that existing loans to MSMEs classified as ‘standard’ may be restructured without a downgrade in the asset classification, subject to the conditions specified.
RBI on 5th May 2021 in view of the coivid-19 situation, further issued circular on Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs).
Clause 2 of the above circular specified the eligibility conditions for MSME accounts to be considered for restructuring under the framework, which inter alia states that the aggregate exposure, including non-fund based facilities, of all lending institutions to the MSME borrower should not exceed ₹25 crore as on March 31, 2021.
However, in view of the prevailing situation and to provide further relief to MSMEs, this above threshold of ₹ 25 crores has now been further enhanced to ₹50 crore.
Mere CBDT Instructions cannot absolve individuals of their obligation to explain the source and nature of their gold holdings, even…
Empanelment of General Observers for ICSI Examinations December 2026 ICSI has invited interested members to enroll as General Observers for…
ITAT answers some important and inter-related issues relating to deduction u/s 80IA In a recent judgment, ITAT has dealt with…
Carry forward of loss can not be denied for belated return, it is only the set off in subsequent year…
Where sales are duly recorded in books and VAT returns, to treat it bogus sales, AO must bringing cogent adverse…
Expenses to celebrate Diwali with staff creates a goodwill and, therefore amounts to expenses incurred for the purpose of business…