Reserve bank of India (RBI) the highest institution went ahead in progress of multiple regulatory provisions which will impact the entire banking plethora towards a better management. The reserve bank of India rolled out some of the important changes given below to enhance overall security:
- Regulatory Policy Revisions
- Financial Markets Expansion
- Debt & Currency Management
- Innovation in Payment & Settlement System
- Data Management
The reserve bank of India has even gathered some understanding for the formalisation of Micro, Small & Medium Enterprises. The RBI has also made some decisions in regard to the classification of exposure of NBFCs and banks.
It will according to the 180 days past due criteria and to whom are not registered under GST including MSMEs with aggregate credit services up to the above limit.
The reserve bank of India issues an statement over the regulatory and development policies in which it stated, “in February 2018, banks and NBFCs were allowed to temporarily classify their exposures to the Goods and Services Tax (GST) registered Micro, Small and Medium Enterprises (MSMEs), having aggregate credit facilities from these lenders up to Rs 250 million, as per a 180 day past due criterion, subject to certain conditions.”
Some of the other statement of reserve bank of India are as, “accordingly, eligible MSME accounts, which were standard as on August 31, 2017, shall continue to be classified as standard by banks and NBFCs if the payments due on September 1, 2017, and falling due thereafter up to December 31, 2018, were/are paid not later than 180 days from their original due date.”
Also, the reserve bank of India made some relaxations in the norms concerned with the due payments of registered MSMEs under goods and services tax.
In an another statement, the bank stated that, “in view of the benefits from increasing formalisation of the economy for financial stability, the 180 days past due criterion, in respect of dues payable by GST registered MSMEs from January 1, 2019 onwards, shall be aligned to the extant norm of 90 day past due in a phased manner, whereas for entities that do not get registered under GST by December 31, 2018, the asset classification in respect of dues payable from January 1, 2019, onwards shall immediately revert to the 90 day norm.”
