As you are aware that RBI has issued a circular no. DBR.No.BP.BC.100/21.04.048/2017-18 dated 7th February 2018 regarding Relief for MSME Borrowers registered under Goods and Services Tax (GST).
Regarding applicability of the said Circular to CC/OD accounts, the RBI has clarified as follows:
CC/OD limits are part of the aggregate exposure to the borrower. OD/CC accounts which become ‘out of order’ as per para 2.2 of the Master Circular on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015 between September 01, 2017 and January 31, 2018 may continue to be classified as standard provided that the irregularity in the account is removed within a period not exceeding 90 days from the original date of the account becoming ‘out of order’.
Other terms and conditions of the said circular shall remain unchanged.
Members are requested to take note of the same.