Reserve Bank of India (RBI):Lockdown controls in various states, including Kerala, have already badly affected micro, small and medium enterprises (MSMEs). This is a blow to the memory of those who overcame last year’s crisis and are moving forward.
As a relief, the Reserve Bank of India (RBI) on May 5 issued a fresh loan restructuring order to all financial institutions, including banks, co-operative banks and non-bank financial institutions (NBFCs). Let’s see how that applies to customers.
The Reserve Bank of India has ruled that if the loan is restructured in the normal way, the account should be reduced to non-performing. Under the new proposal, the core point is that action should not be taken. The move is aimed at providing entrepreneurs with benefits, including a moratorium, in view of the severity of Covid’s second coming.
According to the State Level Bankers’ Committee, about Rs 63,000 crore has been lent to micro, small and medium units in about 15,77,000 accounts in Kerala. Lending institutions have a responsibility to ensure that all of these people receive this benefit as needed.
The Reserve Bank has suggested that the same benefits should be available for personal loans.
(The author is a top banking official. Comment is personal).
Subject to the following conditions. Loan Restructuring:
Applicant should be in the category of Micro Small Medium Enterprises as on 31st March 2021 as per Gazette Notification SO 21 19 (E) dated 26th June 2020.
The applicant must be GST registered on the date of implementation of the rescheduling. This does not apply to MSME units that do not require registration under the current provision on the date of implementation of the reset.
Total debt from all lenders (including bank guarantee and letter of credit) should not exceed `25 crore as on 31-03-2021.
The loan of the applicant should be active assets in the bank book as on 31st March 2021 (should not be defined as non-performing assets or non-performing loans).
Previously restructured loans as directed by the Reserve Bank will not be eligible for this benefit again.
You can apply for such loan rescheduling till 30-09-2021. The lender must notify the applicant in writing of the decision within 30 days of receiving the loan restructuring application. Each lender must make a decision about the restructuring based on the loan they have provided. The decision taken by another financial institution on the loan of the same applicant should not affect the rescheduling.
Resetting must be implemented within 90 days of receipt of application.
If the applicant is not registered in the business portal (udyamregistration.gov.in), such registration should be completed before the date of implementation of the re-arrangement.
In the case of loan rescheduling, lenders are required to prepare a policy approved by their board within 30 days (i.e. before June 5).
The loan repayment moratorium period can be extended up to 2 years as part of loan restructuring. ∙