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MSME rehabilitation
What is the primary objective of MSME rehabilitation as defined by RBI guidelines?
The primary objective is to revive potentially viable sick MSMEs through timely financial and managerial support, enabling them to restore normal operations and repay debts.
What is the minimum period of continuous default required for an MSME to be classified as 'sick' under RBI guidelines?
Three months of continuous default in debt servicing.
How is an MSME unit classified as 'sick' under RBI norms?
An MSME unit is classified as sick if its borrowal account remains NPA for three months or more, or if there is erosion of net worth due to accumulated losses to the extent of 50% or more of its peak net worth during the preceding two accounting years.
What is the purpose of the 'relief and concessions' package offered to sick MSMEs during rehabilitation?
To restore viability by reducing financial burden on the unit.
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