Framework for Revival and Rehabilitation of MSMEs MSME revival framework
An RBI framework that lets an MSME in difficulty, with bank loans up to ₹25 crore, ask its bank to agree a plan to put the account right, restructure it, or as a last step recover it.
Last updated on
- Status
- Open
- Run by
- Reserve Bank of India
What you get
- Covers MSMEs with total loan limits up to ₹25 crore, including consortium accounts
- You can start it yourself if you reasonably expect your business to fail, or if accumulated losses have eroded 50% of your net worth in the previous year
- Banks are expected to spot early stress and act before the account becomes a non-performing asset
- Accounts with loan limits above ₹10 lakh go to a bank committee that includes an independent MSME expert and a State Government nominee. Smaller accounts are handled by the branch
- The committee decides a corrective action plan within 30 days of its first meeting and tells you within five working days
- The plan can be rectification with agreed steps and timelines, restructuring if the unit is viable and not a wilful defaulter, or recovery
- Restructuring terms are to be settled within 20 working days for exposures up to ₹10 crore and 30 working days above that
- You can ask for a review of a recovery decision within ten working days
Who can apply
- Businesses that are already running.
- Micro, small and medium enterprises.
- The most on offer is ₹25 crore.
- Total loan limits up to ₹25 crore
- Restructuring is not open to wilful defaulters
- Applies to scheduled commercial banks, not regional rural banks
How to apply
- Write to your branch asking to be considered under the Framework for Revival and Rehabilitation of MSMEs
- For loans above ₹10 lakh, attach your latest audited accounts, a list of all your debts, what caused the stress and what you propose
- Ask for written acknowledgement and the date of the committee meeting
- If the decision is recovery and you disagree, ask for a review within ten working days
In person, your bank branch, or directly to the bank's MSME committee where one applies
In Kerala, ask your bank branch in Kerala. Banks set up committees at district, division or regional level depending on how many MSME units they finance.
Documents to keep ready
- Latest audited accounts showing net worth
- Details of all liabilities, including government dues and unsecured creditors
- A note on the nature of the stress and the remedies you suggest
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.