Interest subvention on MSME loans extended till end of March 2021: RBI
The Reserve Bank of India has said that the two per cent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans offered by co-operative banks has been extended till 31st of March next year.
In a statement, RBI has further informed that the scheme, initially announced for just two years, has been extended for the financial year 2020-21. RBI said that the coverage of the scheme is limited to all term loans and working capital to the extent of 100 lakh rupees, adding that the requirement of Udyog Aadhaar Number may be dispensed with for units eligible for GST.
RBI has also asked co-operative banks to take appropriate action as envisaged in the operational guidelines and issue necessary instructions to their branches or controlling offices for successful implementation of the scheme