GST-hit MSMEs get more time to pay dues


download (2)MSMEs with exposure of less than ₹25 crore will get additional 180 days to pay their dues, provided the borrower is registered under the GST regime and the borrower account was standard as on August 31, 2017. “The amount from the borrower overdue as on September 1, 2017 and payments from the borrower due between September 1, 2017 and January 31, 2018 are paid not later than 180 days from their respective original due dates,” RBI said.

At present, banks and NBFCs classify a loan account as non-performing asset (NPA) if payment is due for more than 90 day and 120 day respectively.

However, lenders have been asked to make a provision of 5% for such accounts. “The provision in respect of the account may be reversed as and when no amount is overdue beyond the 90/1201 day norm,” RBI said.


Source: The Hindu


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