MANU/RMIC/0102/2020
Ministry : Reserve Bank of India
Department/Board : Financial Inclusion and Development Department
Circular No. : FIDD.MSME&NFS.BC.No.3/06.02.31/2020-2021
RBI/2020-2021/10
Date : 02.07.2020
Notification/ Circulars Referred : Circular RPCD.PLNFS.BC.No.63/06.02.31/2006-07 dated April 4, 2007 MANU/RMIC/0067/2007
Citing Reference:
Circular RPCD.PLNFS.BC.No.63/06.02.31/2006-07 dated April 4, 2007 MANU/RMIC/0067/2007 Referred
The Chairman/ Managing Director/Chief Executive Officer
All Commercial Banks
(including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks
/ District Central Co-operative Banks
All-India Financial Institutions
All Non-Banking Financial Companies
Dear Sir / Madam,
Credit flow to Micro, Small and Medium Enterprises Sector
Please refer to our circular RPCD.PLNFS.BC.No.63/06.02.31/2006-07 dated April 4, 2007 containing definition of Micro, Small and Medium Enterprises as per Section 7 (I) of the Micro Small and Medium Enterprises Development Act, 2006.
2. In this connection, we inform that Government of India (GoI), vide Gazette Notification S.O. 2119 (E) dated June 26, 2020, has notified new criteria for classifying the enterprises as Micro, Small and Medium enterprises. The new criteria will come into effect from July 1, 2020. The details are as under:
2.1 Classification of enterprises
An enterprise shall be classified as a Micro, Small or Medium enterprise on the basis of the following criteria, namely:
i. a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rup........