Free Press Journal

Revised RBI rules for rehab of MSMEs to reduce bad loans Ficci

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New Delhi: The Reserve Bank’s new framework for revival and rehabilitation of MSMEs will help bring down bad loans in the sector, industry body Ficci said.

“The formation of Special Mention Account and mandatory formation of a committee at each district for stressed MSMEs by the banks would enable faster resolution of stress in an MSME account, thereby reducing NPAs in MSMEs,” President of Ficci-Confederation of MSME, Sanjay Bhatia said.

The Reserve Bank of India recently revised rules pertaining to revival of advances to small businesses and asked lenders to form district-level committees to resolve stressed loans to micro, small and medium enterprises (MSMEs).


The new framework for revival and rehabilitation applicable to MSMEs having loan limits up to Rs 25 crore, including accounts under consortium or multiple banking arrangement (MBA).

The framework as proposed by Ministry of MSME will be operationalised by all the banks not later than June 30, 2016.