RBI/201112/171RPCD.SME&NFS.BC.No.19/06.02.31/201112September12,2011
TheChairman/ManagingDirector/ChiefExecutiveOfficerAllScheduledCommercialBanks(excludingRegionalRuralBanks)Madam/DearSir,GuidelinesforRehabilitationofSickSMEUnits
Pleaserefertoparagraph5ofAnnexure
IofourcircularRPCD.NO.PLNFS.BC.57/06.04.01/20012002dated
January16,2002on captioned subject.Norms forgrantof reliefsand
concessionsbybanks topotentiallyviablesickSSIunits for
rehabilitationas furnished inAppendixIIof theabovecircularwere
recently reexamined. Itwasobserved thatall thebankshavemigrated to
theBaseRateregimewitheffectfromJuly1,2010andreferencestoPLR/BPLRarenomoremeaningful.
2. Asperextantguidelineson interestrates,banksarenotallowed to
lendbelowBaseRate.However, in terms of para 2.3.1.3 ofMaster
CircularDBOD.No.Dir.BC. 5
/13.03.00/201112datedJuly1,2011on'InterestRatesonAdvances',incaseofRestructuredloansifsomeoftheWCTL,FITL,etc.needtobegrantedbelowtheBaseRateforthepurposesofviabilityandtherearerecompenseetc.clauses,suchlendingbyScheduledCommercialBankswillnotbeconstruedtobeaviolationoftheBaseRateguidelines.
3.
Further,videRPCDCircularSME&NFS.BC.No.102/06.04.01/200809datedMay04,2009,allScheduled
Commercial Banks have been advised to put in place their own
Restructuring/Rehabilitationpolicy for
revivalofviable/potentiallyviable
sickunits/enterprisesdulyapprovedbytheBoardofDirectors.
4.
Consideringtheabovedevelopments,theReliefandConcessionstoviable/potentiallyviablesickunitsunderrehabilitationprescribedinAppendixIIofourcirculardatedJanuary16,2002standwithdrawn.
5. Banksareadvised toput inplace
theirownBoardapprovedRestructuring/Rehabilitationpolicyforrevivalofviable/potentiallyviablesickMSEunits/enterprises.
6.
Pleaseacknowledgereceipt.Yoursfaithfully(C.D.Srinivasan)ChiefGeneralManager
_______________________________________________________________________________________________________________________________________________________
Rural Planning & Credit Dept., Central Office, 10th Floor,
Central Office Building, Shahid Bhagat Singh Marg, P.Box No. 10014,
Mumbai 400 001
Tel:22661602Fax:22621011/22610943/22610948Email:[email protected]
