RBI doubles aggregate exposure for MSME borrowers to ₹50 cr

04 Jun '21
1 min read
Pic: Shutterstock
Pic: Shutterstock

The Reserve Bank of India (RBI), the country's central bank, has today increased the limit for aggregate exposure, including non-fund based facilities. of all lending institutions to the MSME borrower under “Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” from ₹25 crore to ₹50 crore.

Welcoming the decision, Tiruppur Exporters' Association (TEA) president Raja M Shanmugham said the enhancement of the exposure thresholds limit under the Resolution Framework 2.0 announced by the RBI on May 5, 2021 from ₹25 crore to ₹50 crore for MSMEs and others had been requested by him in his representation made to the Union minister of finance and RBI Governor.

He also welcomed the measure to include the flow of credit of ₹15,000 crore to the SIDBI to further support to MSMEs, which will be beneficial to Tiruppur units. He also lauded the decision to extend a special liquidity facility of ₹16,000 crore to SIDBI for on lending/refinancing through novel models and structures.

Shanmugham hoped the enlarged coverage will support revival and growth of MSMEs.

Fibre2Fashion News Desk (RKS)

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