MSMEs should take benefit of RBI’s restructuring facility: Atre

Source: The Hitavada      Date: 10 Jan 2019 09:28:19


Business Bureau,

Taking cognisance of the problems being faced by MSMEs, Reserve Bank of India organised a meeting with MSMEs representatives in the presence of Governor, Deputy Governor, MSME Secretary and tried to find out ways and means to solve them, said Sudhakar Atre, Banking and Finance Advisor of Laghu Udyog Bharati (LUB).

He was speaking as a keynote speaker at an interactive session on the latest RBI initiative to allow restructuring of finance to MSMEs. Also present were Govind Lele, National General Secretary of LUB and Udayan Shrouti, President of LUB, Nagpur.

Appreciating the steps taken by RBI, Atre said that for the first time RBI has shown positive approach towards MSME sector. MSMEs should try to take optimum benefit of the opportunity. He said, “RBI was kind enough to scan the issues and decided to restructure the loans of MSMEs which has turned into stressed accounts due to external factors.”
He said, RBI has decided to permit a one-time restructuring of existing loans to MSMEs that are default but standard as on January 1, 2019, without an asset classification downgrade. “To become eligible for the scheme, the aggregate exposure including non-fund based facilities of banks and NBFCs to a borrower should not exceed Rs 25 crore as on January 1, 2019,” Atre said.

The restructuring has to be implemented by March, 2020. A provision of 5 per cent in addition to the provisions already held would be made in respect of accounts restructured under the scheme. Each bank has been advised to formulate a policy for the scheme with Board approval which would include framework for viability assessment of the stressed accounts and regular monitoring of the restructured accounts. “Restructuring is not a mechanism to default but it will give more working capital to MSMEs,” Atre said. Explaining in detail about the modalities of the scheme, Atre appealed to the MSMEs to take the overdue amount as of March 31, 2015 and apply to the bank for restructuring it.

Atre was felicitated by Govind Lele. Lele in his address informed about the importance of MSME and work of LUB. He also briefed about the silver jubilee year celebration and urged the MSMEs that each one should give birth to new MSME. The guests were introduced by Udayan Shrouti. The programme was compered by Kaustub Joglekar while Hitesh Agrawal proposed the vote of thanks. The programme was co-ordinated by Nishant Birla, Secretary of LUB, Nagpur. Chandrashekar Shegaonkar, Secretary of MIA, Yuvraj Vyas of BMA, Shashibhushan Vaidya, National Vice-President of LUB, Sunil Sirsikar, National Secretary of LUB, Shrikant Dhondrikar, Regional President of LUB and representatives from industry and academia were present.

LUB on mission to create new entrepreneurs: Lele

With presence in 24 states and 450 districts and a strong network of 20,000 members, Laghu Udyog Bharati (LUB) is on a mission to create new entrepreneurs, said Govind Lele, National General Secretary while talking to media on Wednesday. “We will be taking Udyog Mitra Meetings on district levels and will be visiting colleges to inculcate entrepreneur instinct among the students as a part of the silver jubilee celebrations,” Lele said. He said, “MSME did not need protection, but they need promotion. They must be motivated and not demoralise.”