Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs)
In order to provide simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs, the Ministry of MSME, Government of India, vide their Gazette Notification dated 29th May, 2015, had notified a Framework for Revival and Rehabilitation of MSMEs. To make the Framework compatible with the existing regulatory guidelines on Income Recognition, Asset Classification and provisioning pertaining to Advances, RBI vide its letter RBI/2015-16/338/FIDD.MSME & NFS.BC.No. 21/06/06.02.31/2015-16 dated 17th March, 2016 has advised the Banks to put in place board approved policy to operationalize the Framework.
In this light, Deutsche Bank has constituted a Central Committee will shall provide reasonable access to all eligible Micro, Small and Medium enterprises which have availed credit facilities from such bank. The Committee comprises of senior representatives of the Bank, an independent expert and a representative of the State Government. The Committee shall explore various options to resolve the stress in an account. The intention is to arrive at an early and feasible solution to preserve the economic value of the underlying assets and also to allow the enterprise to continue with its business by subjecting them to a Corrective Action Plan (CAP).
Our clients from the MSME category may voluntarily contact us for initiating proceedings under this framework by the DB Central MSME Committee (DBCMC). The following documents need to be provided for our review:
- Covering letter detailing nature of stress faced by the enterprise and suggested remedial actions
- Latest financials of the enterprise including complete set of IT returns and audit reports, latest 6 months bank statement
- Details of all the liabilities of the enterprise, including the liabilities owed to the state or central government and unsecured creditors, if any
- Any other documents as required by the bank to review the techno-economic feasibility of the proposal, or any such documents that may be required by the committee to arrive at a decision.
A decision will be communicated within 15 days of review by DBCMC.
To know more, please write to firstname.lastname@example.org or call 1860 266 6660#
#Customers outside India need to dial +91 22 6601 6660. Customers in Mumbai can also call at 6601 6660. Call charges apply.