IBA demands recast of loan accounts of small firms amid Covid-19 crisis

The RBI had permitted a one-time restructuring of existing loans to GST-registered MSME units

The Indian Banks’ Association (IBA) has sought two set of relaxations from the Reserve Bank of India (RBI) to help resume economic activities — restructuring of all the micro, small and medium enterprises (MSMEs) loan accounts and withdrawal of additional provisioning norms on moratorium loans.

“The IBA has sought for a restructuring of loans given to the MSME across the board. Right now, according to the RBI guidelines, only the MSMEs, which are registered under the goods and services tax (GST), are eligible to restructure their loan accounts. This makes only a small number of MSMEs in India eligible for it