MANU/RMIC/0140/2020
Ministry : Reserve Bank of India
Department/Board : Department of Regulation
Circular No. : DOR(PCB).BPD.Cir.No.3/13.05.001/2020-2021
RBI/2020-2021/48
Date : 07.10.2020
The Managing Director / Chief Executive Officer
All Primary (Urban) Co-operative Banks
All State Co-operative Banks
All District Central Co-operative Banks
Dear Sir / Madam,
Interest Subvention Scheme for MSMEs - Co-operative banks
Government of India, Ministry of Micro, Small and Medium Enterprises (MSMEs) had announced the 'Interest Subvention Scheme for MSMEs 2018' on November 2, 2018 for Scheduled Commercial Banks. A copy of the salient features and operational guidelines for implementation of the Scheme released by the Ministry of MSMEs is enclosed. Government of India has since decided to include Co-operative Banks also as Eligible Lending Institutions effective from March 3, 2020.
2. The scheme provides for an interest relief of two per cent per annum to eligible MSMEs on their outstanding fresh/incremental term loan/working capital during the period of its validity. The coverage of the Scheme is limited to all term loans / working capital to the extent of
` 100 lakh. The loan accounts on the date of filing claim should not have been declared as NPA as per the extant guidelines in force. No interest subvention shall be admissible for any period during which the account remains NPA.
3. The aforesaid operational guidelines for the Scheme (para 2.1, 2.2 and 2.4 of the enclosed Scheme) have been further modified by the Government as under:
a. The validity of the scheme has been extended till March 31, 2021. Accordingly, fresh or incremental term loan / working capital limit extended by co-operative banks with effect from March 3, 2020 will be eligible for coverage under the scheme.
b. Acceptance of claims in multiple lots for a given half-year by eligible institutions is permitted.
c. Requirement of Udyog Aadhaar Number (UAN) may be dispensed with for units eligible for GST. Units not required to obtain ........