Supreme Court: Air Force Group Insurance Society qualifies as ‘State’ under Article 12  ||  SC: Anganwadi Workers With Degrees Are Eligible For The 29% Quota For Supervisors in Kerala  ||  SC: Giving Accused the Option of Search Before a Police Officer Breaches Section 50 of the NDPS Act  ||  Gujarat HC: Person is Entitled to Compensation For Injury or Death Within Railway Station Premises  ||  Delhi HC: PMLA Can Apply Even if the Scheduled Offence Occurred Before the Law Came Into Force  ||  J&K&L HC: Accused Can Admit Evidence Recorded under Section 299 Crpc After Appearing in Court  ||  J&K&L HC: District Judge Serving as Reference Court under Land Acquisition Act Acts as a Civil Court  ||  Del HC: Subsequent Bail Pleas From Same FIR Should Usually Go Before the Judge Who Denied the First  ||  J&K&L HC: Vaishno Devi Shrine Board, Despite Statutory Status, is Not a ‘State’ under Article 12  ||  SC: Confirmation of an Auction Sale Does Not Bar Judicial Scrutiny of Reserve Price Valuation    

Sanction of Additional Working Capital Limits to Micro and Small Enterprises- (Reserve Bank of India) (29 Dec 2016)

MANU/RMIC/0232/2016

Banking

Refer to circular FIDD.MSME & NFS.BC.No.60/06.02.31/2015-16 dated August 27, 2015 on 'Streamlining flow of credit to Micro and Small Enterprises (MSEs) for facilitating timely and adequate credit flow during their 'Life Cycle'. In terms of para 3 (ii) of the above circular, banks were advised, inter alia, to incorporate with their Boards' approval, in their lending policy to MSEs, a clause for fixing a separate additional limit, at the time of sanction / renewal of working capital limits, specifically for meeting the temporary increase in working capital requirements arising mainly due to unforeseen / seasonal increase in demand for products produced by them. Banks have since confirmed to us having put such a policy in place.

Consequent upon withdrawal of legal tender status of Specified Bank Notes (SBN) of Rs. 500 and Rs. 1000 denominations and based on feedback that some MSEs are facing temporary difficulties in carrying out their normal business due to cash flow mismatches, it has been decided to review the above instructions. Accordingly, banks are hereby advised that they may use the facility of providing above 'additional working capital limit' (approved by their boards as above) to their MSE borrowers, to overcome the difficulties arising out of such cash flow mismatches also. This would be a onetime measure up to March 31, 2017 and should thereafter be normalised in fresh working capital assessment cycle.

Tags : WORKING LIMITS   SANCTION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved