SME Times News Bureau | 07 Jun, 2018
In a relief to all
micro, small and medium (MSMEs), the Reserve Bank of India (RBI) on
Wednesday eased loan-repayment norms for the sector.
give relief to MSMEs that have been affected due to implementation of
the Goods and Services Tax regime, the central bank eased NPA
classification norms for such units facing input credit linkages and
was done with a view to ease the transition of MSMEs to the
formalised sector post their registration under the GST," RBI
said in the monetary policy review.
"Having regard to the input
credit linkages and associated issues, it has now been decided to
temporarily allow banks and NBFCs to classify their exposure, as per
the 180 day past due criterion, to all MSMEs with aggregate credit
facilities up to the above limit, including those not registered
under GST," it said.
Accordingly, eligible MSME accounts, which were standard as on
August 31, 2017, shall continue to be classified as standard by banks
and NBFCs "if the payments due 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", it added.
In view of the benefits from increasing formalisation of the
economy for financial stability, the 180 day past due criterion -- in
respect of dues payable by GST registered MSMEs from January 1, 2019
onwards -- should be aligned to the extant norm of 90 day past due in
a phased manner.
For entities that do not get registered under GST by December 31,
2018, the asset classification in respect of dues payable from
January 1, 2019 onwards shall immediately revert to the 90 day norm,
Services Secretary Rajiv Kumar said in a tweet, "In continuation
of support and relief to MSMEs, NPA recognition for GST and non GST
MSMEs now at 180 days for dues up to December 31, 2018. Tapering norm
from January 1, 2019 to encourage GST registration."