Quick Summary
The Reserve Bank of India (RBI) vide circular dated 05.02.2021 and 05.05.2021, has allowed Scheduled Commercial Banks (SCBs) to deduct the amount equivalent to credit disbursed to New Micro Small and Medium Enterprises (MSMEs), who have not availed any credit facilities from banking_system as on 01.01.2021, from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR). This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a writte
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FAQ :
The RBI allows Scheduled Commercial Banks to deduct credit disbursed to new MSMEs (who had no prior banking credit as of 01.01.2021) from their NDTL for CRR calculation, up to Rs 25 lakh per borrower until 31.12.2021.
ECLGS was launched as part of the Aatma Nirbhar Bharat Package to provide a 100% guarantee to lending institutions against losses from non-repayment, helping MSMEs meet operational liabilities during the COVID-19 crisis.
Launched in November 2018, this portal facilitates in-principle loan approvals of up to Rs 5 crore for MSMEs without human intervention.
TReDS is an electronic platform operational since 2017 that allows MSMEs to get their invoices (receivables against buyers) financed by multiple financiers through an auction mechanism, helping to solve the problem of delayed payments.
This scheme, approved in June 2020, allows banks to provide stressed MSMEs with subordinate debt up to 15% of the promoter's stake or Rs 75 lakh, whichever is lower, to be infused as equity or quasi-equity.
Launched in April 2015, PMMY aims to provide collateral-free loans up to Rs 10 lakh to unfunded micro and small business units for various activities, promoting income generation and employment.
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