SIDBI Launches Asset Restructuring for MSMEs To Take Benefit of RBI’s Guidelines
Shri Manoj Mittal, Deputy Managing Director of SIDBI said, “We have developed this module in collaboration with our associate, India SME Asset Reconstruction Company Limited [ISARC], which is an Asset Reconstruction Company [ARC]. This step would aid in the economic recovery and complement the benefits of far-reaching initiatives announced by the Government of India in this direction.
Small Industries Development Bank of India (SIDBI), the country’s apex financial institution for the promotion, financing and development of Micro, Small and Medium Enterprises (MSME), has launched a web portal arm-msme.in to help MSMEs take benefit of Reserve Bank of India’s (RBI) MSME restructuring guideline. With the help of this Do-It-Yourself (DIY) asset restructuring web module, MSMEs will be able to prepare restructuring proposals by keying in only the most essential data of their past financials, future projections and restructuring requirement. The proposal prepared can be submitted online to the banks and reports can also be generated for submission to banks through email or in hard copies.
Though the RBI has extended the scope of ongoing one-time restructuring of MSME advances to support recovery of viable MSME entities undergoing COVID-19 related stress till March 31, 2021, many MSMEs find it difficult to prepare the restructuring proposals on their own and this DIY kit provides them with a handy tool to do this intuitively based upon their understanding of business. The module makes it easier to compare different options of restructuring as well as reduces the turn-around time. ARM-MSME is being offered free of cost as part of SIDBI’s developmental initiatives.