Non-Banking Finance Companies have requested RBI to extend the one-time restructuring scheme of MSME advances till March 31, 2022, as these players are unable to revive their businesses.
In February, RBI had permitted one-time restructuring of existing MSME advances, classified as ‘standard’ without downgrade in the asset classification subject to certain additional provisioning and other compliances. The time limit for implementation of the scheme was till December 31, 2020.
In a recent letter written to Shaktikanta Das, Governor, RBI, FIDC, an industry body of NBFCs, stated due to the severe second wave of COVID-19 pandemic, the MSMEs have not been able to revive their economic activities and are in urgent need of support from the lenders.
Finance Industry Development Council (FIDC) wrote, “Considering the challenging environment for MSMEs and lenders, it will be helpful, if the RBI extends the restructuring scheme till at least March 31, 2022.”
The industry body also urged the RBI to allow restructuring of certain MSMEs loans that already have got the similar relief under the same scheme during the first wave of COVID-19, but are now facing challenges.