Relief for MSME Borrowers registered under Goods and Services Tax (GST)
RBI\/2017-18\/129 DBR.No.BP.BC.100\/21.04.048\/2017-18 Dated:- 7-2-2018 Circular
RBI
RBI\/2017-18\/129
\nDBR.No.BP.BC.100\/21.04.048\/2017-18
\nFebruary 07, 2018
\nAll banks and NBFCs regulated by the Reserve Bank of India
\nMadam \/ Dear Sir,
\nRelief for MSME Borrowers registered under Goods and Services Tax (GST)
\nPresently, banks and NBFCs in India generally classify a loan account as Non-Performing Asset (NPA) based on 90 day and 120 day delinquency norms, respectively. It has been represented to us that formalisation of business through registration under GST had adversely impacted the cash flows of the smaller entities during the transition phase with consequent diffi<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t was standard as on August 31, 2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Relief for MSME Borrowers registered under Goods and Services Tax (GST)RBI\/2017-18\/129 DBR.No.BP.BC.100\/21.04.048\/2017-18 Dated:- 7-2-2018 CircularRBIRBI\/2017-18\/129 DBR.No.BP.BC.100\/21.04.048\/2017-18 February 07, 2018 All banks and NBFCs regulated by the Reserve Bank of India Madam \/ Dear Sir, Relief for MSME Borrowers registered under Goods and Services Tax (GST) Presently, banks and NBFCs in India generally classify a loan … Continue reading “Relief for MSME Borrowers registered under Goods and Services Tax (GST)”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10343","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10343"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10343\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\niv. The amount from the borrower overdue as on September 1, 2017 and payments from the borrower due between September 1, 2017 and January 31, 2018 are paid not later than 180 days from their respective original due dates.
\nv. A provision of 5% shall be made by the banks\/NBFCs against the exposures not classified as NPA in terms of this circular. The provision in respect of the account may be reversed as and when no amount is overdue beyond the 90\/1201 day norm, as the case may be.
\nvi. The additional time is being provided for the purpose of asset classification only and not for income recognition, i.e., if the interest from the borrower is overdue for more than 90\/1202 days, the same shall not be reco<\/p>\n
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