In view of the ongoing COVID-19 pandemic, RBI has advised REs that no restrictions on operations of customer accounts whose periodic up-dation of KYC is due and pending as on date shall be imposed till December 31, 2021.
In view of the continued need to support viable MSMEs due to resurgence of Covid19, the Restructuring Framework 2.0 has been announced by RBI vide circular RBI/2021-22/32 allows restructuring of MSME loans without a downgrade in the asset classification. The following must be ensured by leaders prior to restructuring of such MSME loan accounts under RBI Circular 32.
- The borrower account must be registered as MSME as on March 31, 2021 (Unless Exempt From GST Registration).
- Aggregate exposure with all lending institutions (Funded / Non Funded) does not exceed 25 crores as on March 31, 2021.
- Borrower account classified standard as on March 31, 2021.
- Borrower account not restructured under previous one time restructuring circular dated August 06, 2020.
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12086&Mode=0