Business Standard

RBI's new norms to force small businesses to get cash management act right

From the start of this fiscal, firms with a working capital limit of Rs 150 crore and above will first have to avail of 40% of it in the form of a working capital demand loan

markets, rbi
Premium

Raghu Mohan
A new credit regime is upon us, and borrowers will have to grin and bear for a while. Effective from the start of this fiscal, firms with a working capital limit of Rs 150 crore and above will first have to avail of 40 per cent of it in the form of a “working capital demand loan”; and from July 1, it will move up to 60 per cent. It’s a departure from the current practice wherein banks have to maintain adequate cash or liquidity to meet a borrower’s requirement time to time even as borrowers with surplus cash typically

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in