New Delhi, Jan. 8 -- The New Year begins with good news for Micro, Small and Medium Enterprises (MSMEs). The RBI last week permitted a one-time restructuring of existing loans of stressed MSMEs, provided the total fund and non-fund based exposure to such a borrower does not exceed Rs 25 crore. Additionally, such a debt restructuring would not lead to a downgrade in their asset classification. No doubt, this move is a big relief to the sector.
In another positive development, the central bank, just a day after the aforesaid announcement, set up an expert committee to look into problems facing the MSME sector, particularly in relation to availability of finance. The committee, headed by former SEBI Chairman U.K. Sinha, would try to find out ...