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RBI/2018-19/127
DBR.No.BP.BC.26/21.04.048/2018-19
February
22, 2019
All banks and NBFCs regulated by
the Reserve Bank of India
Dear Sir / Madam,
Micro, Small and Medium
Enterprises (MSME) sector- Restructuring of Advances
Please refer to circular DBR.No.BP.BC.18/21.04.048/2018-19 dated January
1, 2019 on the above subject. One of the conditions for
restructuring of existing loan of MSMEs without a downgrade in the asset
classification is as under:
“the borrowing entity is
GST-registered on the date of implementation of the restructuring. However,
this condition will not apply to MSMEs that are exempt from
GST-registration” (c.f. para 1 (iii) of the above referred circular).
2. It is clarified that the
eligibility for restructuring without GST-registration, as per the circular
under reference, should be determined on the basis of exemption limit
obtaining as on the date of the aforesaid circular, i.e., January 1, 2019.
Yours faithfully,
(Saurav Sinha)
Chief General Manager in-charge
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