Loan restructuring: Should MSMEs opt for RBI’s one-time restructuring scheme

As the pandemic brought large-scale miseries to businesses, the already beleaguered Indian MSME sector went into an overdrive to seek help from every possible source. The government through various means also tried to help this critical sector. Notably, in August last year, the Reserve Bank of India (RBI), as an interim relief measure, came out with a one-time restructuring (OTR) scheme for stressed firms. Under this, borrowers with loans that