New Delhi, July 3 -- The Reserve Bank of India (RBI) has asked banks, financial institutions and Non-Banking Financial Institution (NBFCs) to reclassify Micro, Small and Medium Enterprises (MSMEs) on the basis of the new criteria.
In a communication to banks, financial institutions and NBFCs, on Thursday, the apex banking body said, ''We advise you to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard, at the earliest.
The Reserve Bank further said in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterpr...