Sidbi is tying up with banks to consider MSME restructuring proposals sent through its newly launched hand-holding help-line.
Punjab National Bank NSE 0.28 % (PNB) and Indian Bank NSE 1.44 % have agreed to accept restructuring proposals generated by Sidbi's MSME customers using its helpline. The bank has already signed an MoU with Indian Bank and is in the process of signing separate MoU with PNB and other banks, according to senior officials at Sidbi.
Sidbi's helpline- a web portal-"arm-msme" is designed to help MSMEs take benefit of Reserve Bank of India’s MSME restructuring guideline. With the help of this `Do-It-Yourself' asset restructuring web module, MSMEs will be able to prepare restructuring proposals by keying the most essential data of their past financials, future projections and restructuring requirement.
The proposal prepared can be submitted online to the banks and reports can also be generated for submission to banks. ..
Though the RBI has extended the scope of ongoing one-time restructuring of MSME advances to support recovery of viable MSME entities undergoing COVID-19 related stress till March 31, 2021, many MSMEs find it difficult to prepare the restructuring proposals on their own. Sidbi's `Do-It-Yourself' kit which is being offered free of cost as a part of Sidbi's developmental initiative provides them with a handy tool to do this intuitively based upon their understanding of business.