Banking Quest announces their next webinar on “Micro, Small & Medium Enterprises – Session 2” on 13th December, 2020 (Sunday) – 11 am to 12 noon.

This webinar will be Session 2 of our “MSME Outreach Program” and will continue with other sessions in subsequent Sundays. In this series of webinars, we shall be discussing all those aspects of
MSMEs, which are most relevant for bankers and officials of financial sector

The agenda of the program will be as below:-

• Importance of Micro, Small & Medium Enterprises (MSMEs) to country’s economy
• Various government machineries facilitating promotion and development of MSMEs.
• Classification of Micro, Small & medium Enterprises as per latest definition given by RBI.
• Challenges before MSMEs.
• Government Initiatives for the benefits of MSME Sector
• Post Covid-19 Government Initiatives to support MSMEs.
• BCSBI norms for disposal of loan applications submitted by MSMEs.
• Problems faced by banks in granting loans to MSMEs.
• Credit Facilities to MSMEs by Banks:-
Since MSME borrowers are sound in their technical knowledge but poor in maintaining their books of accounts, we shall be discussing how to recast the balance sheet submitted by a MSME entrepreneur.
Calculation of their working capital needs as per Holding Period method and also methods suggested by Tandon Committee and Nayak Committee will be discussed.

• Credit Guarantee Fund Trust for Micro & Small Enterprise (CGTMSE)- its role and mechanism in facilitating loans to MSMEs.

• Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises:-

a) RBI guidelines for identification of incipient sickness in MSMEs’ loan accounts
b) Corrective Action Plans for timely addressing the stress in loan accounts.
c) Providing handholding support to borrowers.
d) Addressing Viability Benchmarks for restructuring.
e) Prudential norms on restructuring.
f) Income Recognition norms on restructuring.
g) Commutation of Diminution in Fair Value of a loan account.
h) Working Capital Term Loan Facilities.
i) Funded Interest Term Loan Facilities.

• Restructuring of Stressed Accounts under MSME Sector for loans up to Rs 25 crore.
Here, we shall be discussing RBI guidelines on restructuring of MSMEs’ loan accounts without downgrading the asset quality. The scheme is valid up to 31.03.2021

• Business Loan Restructuring Affected Due To Covid-19 under MSME Sector for loan above Rs 25 crore.
Discussion points under this scheme will be:-
a. Eligibility criteria for the scheme and how to calculate the impact of Covid-19 on the borrower.
b. Types of relaxations to be provided on term loan as well as working capital credit facilities.
c. Various compliances which banks are required to complete to implement the restructuring package.
d. Recommendations of the Expert Committee set up by RBI for 26 sectors affected due to COVID-19.

Besides above, we shall be taking up various case studies and also frequently asked questions on the topic.

Tilak Gulati
CEO
Banking Quest