News 1

Extension of Time upto 31.03.2021 for the benefits under Interest Subvention Scheme for MSMEs:

Under “Interest Subvention Scheme for MSMEs 2018’ Govt. of India has provided for an interest relief of two per cent per annum to eligible MSMEs ( Micro, Small and Medium Enterprises)  on their outstanding, fresh  and incremental term loan/working capital during the period of its validity. The coverage of the Scheme is limited to all term loans / working capital to the extent of ₹100 lakh. However the loan accounts on the date of filing claim should not have been declared as NPA as per the guidelines of Reserve Bank of India. No interest subvention shall be admissible for any period during which the account remains NPA.

Vide the Notification October 7, 2020, Reserve Bank of India has notified the following modifications for the benefits of MSMEs with the corresponding changes by the Govt. of India in the Interest Subvention Scheme for MSMEs 2018:

• The validity of the scheme has been extended till March 31, 2021. Accordingly, fresh or incremental term loan / working capital limit extended by co-operative banks with effect from March 3, 2020 will be eligible for coverage under the scheme.
• Acceptance of claims in multiple lots for a given half-year by eligible institutions is permitted.
• Requirement of Udyog Aadhaar Number (UAN) may be dispensed with for units eligible for GST. Units not required to obtain GST may either submit Income Tax Permanent Account Number (PAN) or their loan account must be categorized as MSME by the concerned bank.
• Trading activities have also been allowed to be covered under the scheme without UAN.