RBI/2017-18/186
DBR.No.BP.BC.108/21.04.048/2017-18
June
6, 2018
All banks and NBFCs regulated by
the Reserve Bank of India
Madam / Dear Sir,
Encouraging formalisation of
MSME sector
Please refer to the circular DBR.No.BP.BC.100/21.04.048/2017-18 dated
February 07, 2018.
2. Having regard to the input
credit linkages and ancillary affiliations, it has now been decided to
temporarily allow banks and NBFCs to classify their exposure, as per the
180 days past due criterion, to all MSMEs, including those not registered
under GST, as a ‘standard’ asset, subject to the following conditions:
i.
The
aggregate exposure, including non-fund based facilities, of banks and NBFCs
to the borrower does not exceed ? 250 million as on May 31, 2018.
ii.
The
borrower’s account was standard as on August 31, 2017.
iii.
The
payments due from the borrower as on September 1, 2017 and falling due
thereafter up to December 31, 2018 were/are paid not later than 180 days
from their original due date.
iv.
In
respect of dues payable by GST-registered MSMEs from January 1, 2019
onwards, the 180 days past due criterion shall be aligned to the extant
IRAC norms in a phased manner, as given in the Annex. However, for MSMEs that are not registered under GST as
on December 31, 2018, the asset classification in respect of dues payable
from January 1, 2019 onwards shall immediately revert to the extant IRAC
norms.
v.
The
other terms and conditions of the circular dated February 07, 2018 remain
unchanged.
Yours faithfully,
(Saurav Sinha)
Chief General Manager-in-Charge
Annex
Period
during which any payment falls due
|
Time
permitted
|
September 1, 2017 – December
31, 2018
|
180 days
|
January 1, 2019 – February 28,
2019
|
150 days
|
March 1, 2019 to April 30,
2019
|
120 days
|
May 1, 2019 onwards
|
90 days
|
|