(MENAFN- KNN India) RBI lifts credit caps for services sector MSMEs
New Delhi, Apr 26 (KNN) In a move that would bring relief to the MSMEs in services sector, the Reserve Bank of India (RBI) has lifted credit caps with immediate effect for all service sector Micro, Small and Medium Enterprises (MSME) borrowers under the priority sector lending norms.
In February, MSMEs engaged in manufacturing activities got similar relaxation.
The RBI also tweaked loan disbursement targets for banks at 7.5 per cent of Adjusted Net Bank Credit or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher, as per the extant guidelines on priority sector lending, according to a media report.
Until now, though MSME advances under priority sector loans came with certain limits like Rs 25 lakh for micro enterprises in the manufacturing sector, while for small and medium enterprises it was Rs 25 lakh-Rs 5 crore and Rs 5-Rs 10 crore respectively.
While for the service sector, the cap was set at Rs 10 lakh for micro, Rs 10 lakh-Rs 2 crore for small and Rs 2 crore-Rs 5 crore for medium enterprises.
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