RBI gives Covid-hit MSMEs one more window for restructuring loans

Businesses that didn't slip into NPA till March 1, and were treated as 'standard' accounts will benefit from the scheme which will have to be implemented by March 1, 2021

The Micro, Small and Medium Enterprises (MSMEs) got another window of breather from the Reserve Bank of India (RBI) on Thursday which allowed restructuring of loans for small businesses impacted by the Covid-19 pandemic.

MSMEs that didn’t slip into non-performing asset (NPA) till March 1, 2020 and were treated as ‘standard’ accounts will benefit from the scheme which will have to be implemented by March 1, 2021. This is an extension of a continuing scheme, in place till December 31, 2020, which was meant for ‘standard’ accounts till January 1, 2020.

The move is significant as the chance of an