Resolution of COVID-19 related stress of MSMEs





In view of the uncertainties created by the resurgence of the Covid-19 pandemic 2nd wave in India in the recent weeks, Reserve Bank of India vide its circulars No  DOR.STR.REC.12/21.04.048/2021-22 dated May 5, 2021 have advised to extend the facility of restructuring the advances to MSME borrowers on the following terms and conditions:


  • The borrower should be classified as MSME as on 31-03-2021 in terms of Gazette Notification S.O.2119(E) dated June 26, 2020
  • The borrowing entity is GST registered on the date of implementation of the restructuring. However, this condition will not apply to MSMEs that are exempt for GST registration. This shall be determined on the basis of exemption limit obtaining as on 31-3-2021.
  • The aggregate exposure including non fund based facilities of all lending institutions to the borrower does not exceed Rs 50 crore as on 31-3-2021.
  • The borrower's account was a STANDARD ASSET as on 31-03-2021.
  • The borrower's account was not restructured earlier in 2020 on account of Covid-19
  • The restructuring of the borrower account is invoked by 30-09-2021.  For this purpose, the restructuring shall be treated as invoked when the lending institution and the borrower agree to proceed with the efforts towards finalizing a restructuring plan to be implemented in respect of such borrower. 
  • The restructuring of the borrower account is implemented within 90 days from the date of invocation i.e., not later than December 29, 2021.
  • If an MSME borrower is not registered in the Udyam Registration portal, such registration shall be required to be completed before the date of implementation of the restructuring plan for the plan to be treated as implemented.


For other terms and conditions, application format and the documents to be submitted, borrowers are advised to contact the branch from where the loan is availed by them.

Basic Savings


No Minimum Balance, No initial deposit to open the account.

No restrictions like Age, Income Criteria for opening BSBD Account.

All provisions of KYC, AML, PML are applicable.

Passbooks are given free.

Maximum of Four withdrawals in a month including ATM withdrawals;

RuPay ATM Cum Debit Card with Accidental Insurance of Rs. 1.00 Lac free

No charges for all the above facilities



The Hon’ble Prime Minister in his Independence Day Speech on 15th August, 2014 announced a comprehensive program of Financial Inclusion targeting the large number of people who are currently deprived of even rudimentary financial services. The PradhanMantri Jan DhanYojana (PMJDY) sets out to provide a basic Bank account to every family who till now had no account.