MSME Associations asked to publicise new loan scheme for first time borrowers

New Delhi, Feb 13 (KNN) The office of Development Commissioner-MSME, under the ministry of MSME has dashed off a letter to all Industry Associations to publicise about the Reserve Bank of India (RBI) notification dated February 5th, 2021 issued to all Scheduled Commercial Bank (SCBs) regarding credit to MSME entrepreneurs.

As per this notification SCBs will be allowed to deduct the amount equivalent to credit disbursed to ‘New MSME Borrowers’ from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CCR).

For the purpose of this exemption, ‘New MSME Borrowers’ shall be defined as those MSME Borrowers who have not availed any credit facilities from the banking system as on January 1, 2021. This exemption will be available only upto 25 lakhs per borrower.

''For those micro units in the MSME sector who have not availed any credit from the banking system, it is a very good opportunity from them to take the credit if required. Therefore, it is requested that this information may be widely circulated among all MSME units so that they can avail the benefit,'' the letter read.