SME Times News Bureau | 05 Feb, 2021
In order to incentivise new credit flow to the micro, small, and medium
enterprise (MSME) borrowers, Scheduled Commercial Banks will be allowed
to deduct credit disbursed to 'New MSME borrowers' from their net demand
and time liabilities (NDTL) for calculation of CRR.
As part of
the additional measures announced by RBI Governor Shaktikanta Das after
the MPC meeting, 'New MSME borrowers' have been defined as those who
have not availed any credit facilities from the banking system as on
January 1, 2021.
This exemption will be available for exposures
up to Rs 25 lakh per borrower for credit extended up to the fortnight
ending October 1, 2021.
Details of the scheme would be spelt out separately by the Reserve Bank of India.