FHRAI

INDIA

News Details

Credit to MSME Entrepreneurs

06 th Feb 2021

The Managing Directors/CEO's/Owners/Director/Partners/General Managers
All Members of FHRAI

CC:   Executive Committee Members of FHRAI
         All Regional Associations

Sub: Credit to MSME Entrepreneurs

Dear Member,

The recent meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India has decided to introduce lending to new MSME customers without statutory requirements.

Accordingly, Scheduled Commercial Banks will be allowed to deduct the amount equivalent to credit disbursed to ‘New MSME borrowers’ from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR). For the purpose of this exemption, ‘New MSME borrowers’ shall be defined as those MSME borrowers who have not availed any credit facilities from the banking system as on January 1, 2021.

A circular from RBI dated 5th February 2021 is enclosed for your reference.

With best regards,

Jaison Chacko
Secretary General 
_____________________________________________________

The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780,  011-40780777, Email: fhrai@fhrai.com, Website: www.fhrai.com

 

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THE FEDERATION OF HOTEL & RESTAURANT
ASSOCIATIONS OF INDIA

Address:

B-82, 8th Floor, Himalaya House, 23,
K. G. Marg, New Delhi-110 001

Telephone: 011-40780780

Fax: 011-40780777

E-mail: fhrai@fhrai.com

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