MUMBAI: The 2 per cent curiosity subvention scheme for micro, small and medium enterprises (MSMEs) on loans prolonged by co-operative banks has been prolonged until March 31 subsequent yr, the Reserve Financial institution of India mentioned on Wednesday.
The phrases of the scheme have additionally been tweaked.
The federal government had introduced the ‘Curiosity Subvention Scheme for MSMEs 2018’ in November 2018 for scheduled business banks for 2 monetary years 2018-19 and 2019-20. It has been prolonged for the monetary yr 2020-21. Co-operative banks additionally grew to become as eligible lending establishments efficient from March 3, 2020.
The protection of the scheme is restricted to all time period loans and dealing capital to the extent of Rs 100 lakh. The scheme supplies for an curiosity aid of two per cent each year to eligible MSMEs.
In notification, the RBI mentioned sure operational tips for the scheme have been additional modified by the federal government. The validity of the scheme has been prolonged until March 31, 2021.
“Accordingly, contemporary or incremental time period mortgage / working capital restrict prolonged by co-operative banks with impact from March 3, 2020 will probably be eligible for protection beneath the scheme,” RBI mentioned.
Additional, requirement of Udyog Aadhaar Quantity (UAN) could also be allotted with for items eligible for GST.
Models not required to acquire GST could both submit Earnings Tax Everlasting Account Quantity (PAN) or their mortgage account have to be categorised as MSME by the involved financial institution, the RBI mentioned.
RBI has requested co-operative banks to take applicable motion as envisaged within the operational tips and problem mandatory directions to their branches or controlling workplaces for profitable implementation of the scheme.
As per the scheme, the mortgage accounts on the date of submitting declare mustn’t have been declared as non-performing belongings (NPAs). No curiosity subvention can be admissible for any interval throughout which the account stays NPA.

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