Resolution Framework Msme

MSME & Mid Corporate Credit Division, Head Office, Wing ‘B’, 4 th Floor, Sector 10,
Dwarka, New Delhi -110075, e-mail: sme@pnb.co.in

Date: 27.05.2021
In Continuation of –
TO ALL OFFICES
MSME Division Circular
no- 98/2020 dated
MSME & MID CORPORATE CREDIT DIVISION CIRCULAR NO. - 42 /2021
In view of the uncertainties created by the resurgence of the COVID-19 pandemic in

RESOLUTION FRAMEWORK 2.0 – RESOLUTION OF COVID-19
the recent weeks, RBI vide its notification DOR.STR.REC. 12/21.04.048/2021-22
RELATED
dated 05.05.2021 STRESS
has decided OF MICRO,
to extend SMALL facility
the captioned AND MEDIUM
for restructuring
ENTERPRISES (MSMEs)
existing loans without a downgrade in the asset classification.
Board has approved the guidelines prescribed by RBI of Resolution of COVID-19

related stress of MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) on
27.05.2021.
Detailed guidelines along with application forms, appraisal formats, frequently asked
questions for staff as well as for public and standard operating procedures have been
annexed herewith.
All field functionaries are advised to go through the instructions carefully for ensuring
its meticulous compliance.
All inspecting officials are advised to note the guidelines to ensure its compliance. In
case of non-compliance of above mentioned guidelines the issue of non-compliance
may be flagged/reported to the competent authority for taking further action in the
matter.
(Ashok Kumar Gupta)

General Manager
MSME & Mid Corporate Credit Division, Head Office, Wing ‘B’, 4 th Floor, Sector
10, Dwarka, New Delhi -110075, e-mail: sme@pnb.co.in
INDEX
Sl Particulars Page
no No
1 Brief Details of the Resolution Plan 3
i. Eligibility;
ii. Invocation Process;
iii. Implementation Process;
iv. Sanctioning Authority and Loan Discretionary

Power;
2 Annexure II - FAQs – Staff 17
3 Annexure III - FAQs – Public 23
4 Annexure 3.1 -SOP for MSME Restructuring up to Rs 27
10.00 Lakh
5 Annexure 3.2 -SOP for MSME Restructuring Above Rs 29
10.00 Lakh & up to Rs 25.00 crore
6 Annexure 3.3 - Offer Cum Acceptance Letter & 31
Application for Term Loan up to Rs 10.00 Lakh.
7 Annexure 3.4 - Offer Cum Acceptance Letter 36
& Application for CC/OD up to Rs 10.00 Lakh
8 Annexure 4 - Common Application and Appraisal 41
Format Up to Rs 25.00 Cr
Page 2 of 40
MSME/OTR2.0/AM/2020-21
RESOLUTION FRAMEWORK 2.0 – RESOLUTION OF COVID-19

RELATED STRESS OF MICRO, SMALL AND MEDIUM
ENTERPRISES (MSMEs)
In view of the uncertainties created by the resurgence of the Covid-19 pandemic in

the recent weeks, RBI vide its notification DOR.STR.REC. 12/21.04.048/2021-22
dated 05.05.2021 has decided to extend the captioned facility for restructuring
existing loans without a downgrade in the asset classification.
1 ELIGIBLE LOANS/ BORROWERS
i. The borrower should be classified as a micro, small or medium enterprise

as on March 31, 2021 in terms of the Gazette Notification S.O. 2119
(E) dated June 26, 2020.
ii. The borrowing entity is GST-registered on the date of implementation of

the restructuring. However, this condition will not apply to MSMEs that
are exempt from GST-registration. This shall be determined on the basis
of exemption limit obtaining as on March 31, 2021.
iii. The aggregate exposure, including non-fund based facilities, of all

lending institutions to the borrower does not exceed ₹25 crore as on
March 31, 2021.
iv. The borrower’s account was a ‘standard asset’ as on March

31, 2021.
v. The borrower’s account was not restructured in terms of the circulars

DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020;
DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020; or
DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019
(collectively referred to as MSME restructuring circulars).
vi. The restructuring of the borrower account is invoked by

September 30, 2021. For this purpose, the restructuring shall be
Page 3 of 40
treated as invoked when the lending institution and the borrower agree to
proceed with the efforts towards finalizing a restructuring plan to be
implemented in respect of such borrower. The decisions on applications
received by the lending institutions from their customers for invoking
restructuring under this facility shall be communicated in writing to the
applicant by the lending institutions within 30 days of receipt of such
applications. The decision to invoke the restructuring under this facility
shall be taken by each lending institution having exposure to a borrower
independent of invocation decisions taken by other lending institutions, if
any, having exposure to the same borrower.
vii. The restructuring of the borrower account is implemented

within 90 days from the date of invocation.
viii. If the borrower is not registered in the Udyam Registration

portal, such registration shall be required to be completed
before the date of implementation of the restructuring plan for
the plan to be treated as implemented.
ix. Upon implementation of the restructuring plan, the lending institutions

shall keep provision of 10 percent of the residual debt of the borrower.
x. All other instructions specified in the circular

DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020 shall remain
applicable.
 In respect of restructuring plans implemented as per Para 1 above, asset

classification of borrowers classified as standard may be retained as such,
whereas the accounts which may have slipped into NPA
category between April 1, 2021 and date of implementation
may be upgraded as ‘standard asset’, as on the date of
implementation of the restructuring plan.
 In respect of accounts of borrowers which were restructured in terms of

the MSME restructuring circulars, as a one-time measure, it is permitted
to review the working capital sanctioned limits and / or drawing power
based on a reassessment of the working capital
cycle, reduction of margins, etc. without the same being treated as
Page 4 of 40
restructuring. The decision with regard to above shall be taken by
September 30, 2021. The reassessed sanctioned limit / drawing
power shall be subject to review by the lending institution at
least on a half yearly basis and the renewal / reassessment at
least on an annual basis. The annual renewal/reassessment shall be
expected to suitably modulate the limits as per the then-prevailing
business conditions.
 The above measures shall be contingent for consideration of restructuring

that the same is necessitated on account of the economic fallout from
Covid-19. Further, accounts provided relief under these instructions shall
be subject to subsequent supervisory review with regard to their
justifiability on account of
the economic fallout from Covid-19.
2 REFERENCE DATE
The reference date for calculation of eligibility conditions mentioned above for
resolution shall be 31.03.2021.
4 DATE OF INVOCATION
 The date on which Bank conveys to the Borrower, based on the

application made, that Bank, in-principle, is agreeable to implement the
resolution package, will be the date of invocation.
 For Loan up Rs 10.00 Lakh, an Offer Cum Acceptance Letter has been
devised for Term Loan (Annexure 3.1) as well as for CC/OD Loan
(Annexure 3.2) separately.
 The resolution process under this window shall be treated as invoked

when the bank and the borrower agree to proceed with the efforts
towards finalizing a resolution plan to be implemented in respect of
such borrower. The decision on the application shall be communicated in
writing to the applicant by the bank through registered email /SMS on
registered mobile number/registered post/courier/by hand within 30 days
of receipt of such applications.
 Resolution under this framework can be invoked not later than

30.09.2021.
Page 5 of 40
However, the branches should strive for early invocation.
5 TIMELINE FOR IMPLEMENTATION OF RESOLUTION PLAN (RP)
The restructuring of the borrower account is to be implemented within 90 days

from the date of invocation.
6 SCOPE OF RESOLUTION PLAN
 Moratorium may be extended to borrowers whose income has been

impacted.
 Rescheduling of installments and extension of tenure maximum up to 10
years from the date of original sanction of loan. However,
reschedulement of term loan(s) beyond 10 years from the date of
original sanction may be allowed by HOCAC I & above.
 The moratorium period, if granted, shall come into force immediately
upon implementation of the resolution plan.
 Fresh repayment schedule to be generated and the revised EMIs to start
immediately after the moratorium period.
 After restructuring of accounts in CBS, the details are also to be captured
in CBS through ‘RSAM’ menu option (select ‘M- MSME Restructuring
in Restructuring type).
7 IMPLEMENTATION CONDITIONS FOR RESOLUTION PLAN
The resolution plan shall be deemed to be implemented if all of the

following conditions are met:
 All related documentation, including execution of necessary agreements

between the Bank and the borrower are completed in consonance with the
resolution plan being implemented.
 The new capital structure and / or changes in the terms and conditions of
the existing loans get duly reflected in the books of lender/s and the
borrower.
 Post-implementation of the package, the accounts of the borrower should

continue to be Standard.
 Any resolution plan implemented in breach of the above stipulated

timeline shall be fully governed by the Prudential Framework.
Page 6 of 40
8 SANCTIONING AUTHORITY
The Resolution Plan shall be deemed to be implemented only if the account

fulfils the eligibility criteria mentioned above as per the table below:
SN Resolution Aggregate Sanctioning Authority

Plan Exposure of
MSME
Borrowers
1 Rescheduling of Aggregate Reschedulement is allowed
payments exposure up to without any further exposure by
for term loans ₹10 lakh GBBs/PLPs/MCCs.
Aggregate Within vested Loaning powers

exposure more of respective sanctioning
than ₹10 lakh authority as prescribed in L&A
61/2021 dated 07.04.2021 &
other
circulars from time to time.
2 Full/Part Aggregate As an exception looking into
Conversion of Exposure up to prolonged COVID situation
Working Capital ₹ 25 crores PLP/MCC & above can carve
out WCTL to the extent of their
limit vested aggregate loaning
into Term powers as prescribed in L&A
Loan i.e., 61/2021 dated 07.04.2021 &
WCTL other circulars from time to time.
Detailed justification be
recorded in the file.
Any Irregular portion in the
account may be converted into
WCTL subject to maximum of
50% of fund based WC limit
sanctioned or outstanding
whichever is higher, to the
borrower subject to compliance
of other terms & conditions.
However
ZOCAC-II may consider
Page 7 of 40
WCTL more than 50% of fund
based sanctioned limit on
case to case basis.
3 Conversion of Aggregate For considering the FITL
any interest Exposure up to sanctioning authority upto the
accrued, or to ₹ 25 crores level of MCC can exercise 20
be accrued, % of their vested loaning power,
into another over & above the aggregate
commitment per borrower.
credit facility
like Funded However ZOCAC-I and above
Interest Term may consider FITL upto their
Loan (FITL) vested loaning powers for
aggregate commitment per
borrower.
4 Additional Aggregate Additional funding under One

funding Exposure up to Time Restructuring shall be
₹ 25 crores considered by next higher
sanctioning authority for the
cases falling up to the power
of GBB/PLP/MCCs.
However, the same can be
considered within their
respective delegated power in
case the proposal falls within
vested loaning power of
ZOCAC-I and above.
S Nature of Incumb Incum ZOCAC - ZOCA HOCA

N facility/ relief & ent of bent I C - II CI&
concessions Genera of ABO
l PLP/ VE
Bankin MCC
I Aggregate Up to Up to vested loaning powers as per
commitment 10.00 loaning power chart in force.
under lakh
rehabilitation/ Only.
restructuring
package
without
additional
exposure.
Page 8 of 40
S Nature of Incumb Incumben ZOCA ZOCA HOC
N facility/ relief & ent of t of PLP/ C-I C - II AC I
concessions Genera l MCC &
Bankin ABO
VE
g
Branch
es
(GBBs)
II Full/Part For As an exception looking into prolonged
Conversion of aggregat COVID situation PLP/MCC & above can
Working Capital e carve out WCTL to the extent of their
limit into Term exposure vested aggregate loaning powers as
Loan i.e., WCTL up to Rs prescribed in L&A 61/2021 dated
10.00 07.04.2021 & other circulars from time to
lakh. time.
Detailed justification be recorded in the
file.
Any Irregular portion in the account may
be converted into WCTL subject to
maximum of 50% of fund based WC limit
sanctioned or outstanding whichever is
higher, to the borrower subject to
compliance of other terms & conditions.
However ZOCAC-II may consider WCTL
more than 50% of fund based sanctioned
limit on case to case basis.
II Conversion of For considering the FITL sanctioning authority upto the
I level of MCC can exercise 20 % of their vested loaning
any interest power, over & above the aggregate commitment per
accrued, or to be borrower.
accrued, into
another credit However ZOCAC-I and above may consider FITL
facility like upto their vested loaning powers for aggregate
Funded Interest commitment per borrower.
Term Loan (FITL)
Page 9 of 40
S Nature of Incumb Incum ZO ZOCA HOCAC I &
N facility/ relief & ent of bent CA C - II ABOVE
concessions C-I
Genera of
l PLP/
Bankin MCC
g
Branch
es
(GBBs)
IV Additional limits Additional funding under One Time Restructuring shall be
for considered by next higher sanctioning authority for the cases
Working capital falling up to the power of GBB/PLP/MCCs.
and Term loan.
However, the same can be considered within their respective
delegated power in case the proposal falls within vested
loaning power of ZOCAC-I and above.
V Waivement of No No Powers Full Powers

Processing fee/ Powers
any other
service charges
VI Repayment
period for
restructured debt Maximum Repayment period defined as below:
(existing
as well as fresh
TL), which shall
also include
extension of
moratorium
period
a. Micro & Small 10 years Full powers
enterprises
b. Medium 10 years Full powers
Enterprises
VII Reduction in In case existing facility is on MCLR, Full Powers
Rate of Interest the ROI should be linked with RLLR subject to the rate
For only before restructuring and no of interest after
Fresh/Additional reduction in ROI shall be allowed on allowing
Term Loans/ account of restructuring in Field relaxation
Working Capital powers. should not be
Facilities below RLLR.
Page 10 of
9 OTHER SANCTIONING STIPULATIONS
Sanctioning authority as per delegated powers as prescribed above are

empowered to reschedule repayment of viable MSME units in Standard
category and when the account is being restructured for the 1st time
except the following cases:
i. If FITL is considered under Resolution Plan, it shall not be treated as

additional funding for the purpose of reckoning the loaning powers. For
example PLP is considering a resolution plan for a MSME borrower
having sanctioned WC limit of Rs 1 crore and the outstanding as on date
is Rs 1.10 crores( including the interest ) . In this case if FITL of Rs 10
lacs is to be sanctioned, it can be considered by PLP itself.
ii. Any Irregular portion in the account may be converted into WCTL
subject to maximum of 50% of fund based WC limit sanctioned or
outstanding whichever is higher, to the borrower subject to compliance of
other terms & conditions. However ZOCAC-II may consider WCTL
more than 50% of fund based sanctioned limit on case to case basis.
iii. Incumbents cannot reschedule own sanctions which will be considered by
next higher authority except GECL and PNB Svanidhi.
iv. Reschedulement of debt in any account within one year of first sanction
or sanction of term loan (except GECL and PNB Svanidhi) shall be
approved by next higher authority
v. In case of sanction of extension of repayment period of existing TL,
maximum up to 7 years starting from the date of reschedulement, which
shall also include extension of moratorium period. The above extension
shall, however be subject to the condition that overall repayment period
of the account including this extension is not going beyond 10 years
from the date of original sanction. However, reschedulement of
term loan(s) beyond 10 years from the date of original sanction may be
allowed by HOCAC I & above.
vi. No concessions in interest rate shall be considered by field
functionaries in MSME restructured accounts
vii. Sanctioning authority may refund /waive the Penal interest for the
period from 01.04.2021 to 31.03.2022.
viii. Efforts to be made by the sanctioning authority to identify the linked
Page 11 of
deposits in the accounts and sensitization of the borrower to utilize these
funds instead of availing Resolution Plan as the reporting shall be done as
“Restructured Advances” by Bank to Credit Information Companies as
per RBI norms.”
ix. TEV study is not required for the borrowers having exposure upto Rs 10
crores. In case exposure of the borrower is above Rs 10 Crore and
additional funding is not considered, TEV study shall also not be
required. (For other details regarding TEV study Credit Division circular
no 06/2021 dated 24.04.2021 may be referred). For the purpose of TEV
study under Resolution plan, FITL shall not be considered as additional
finance. If no additional finance is sanctioned then financial viability is
only to be carried out by sanctioning authority.
x. Interest moratorium may be considered. Interest for the moratorium
period may be converted into FITL, repayable within a maximum period
of 2 years including moratorium of 6 months.
xi. Revisions in margins - margin for stock and receivables may be reduced
by 10% from margin as per existing sanction by the Sanctioning
Authority. However margin reduction upto 20 % can be allowed by
ZOCAC-I and more than 20 % by ZOCAC –II selectively. This shall be
subject to maintenance of margins to minimum floor of 10% in case of
stock and 15% in case of receivables.
xii. Based on working capital cycle of the borrower, the following authorities
may permit relaxation in age of book debts beyond 90 days under
Resolution framework after satisfying itself with the quality of book
debts and recording justifications in file.
Upto max 120 days – PLP/MCC

Upto Max 150 days- ZOCAC-I
Upto max 180 days –ZOCAC-II
HOCAC-I shall have the powers to approve the Resolution plan beyond
the above prescribed number of days in exceptional circumstances.
xiii. Subsequently, the margins/book debts period shall be restored to the
original as an when the unit becomes viable within the maximum period
of two years.
Page 12 of
10 ASSET CLASSIFICATION
 The asset classification of borrowers’ accounts classified as ‘Standard’
will be retained as such upon implementation under the Framework.
 The accounts which may have slipped into NPA between 01.04.2021 and
date of implementation may also be upgraded as Standard, as on the date
of implementation of the plan.
11 POST IMPLEMENTATION PERFORMANCE

 For loans, after implementation of the resolution plan in terms of this
facility, the subsequent asset classification will be governed by the
extant IRAC norms laid out in the RBI Master Circular - Prudential
norms on Income Recognition, Asset Classification and Provisioning
pertaining to Advances dated 01.07.2015.
 In CBS for identifying the restructured accounts, details are to be

captured through RSAM menu option, so as to facilitate focused
monitoring and follow-up.
12 VIABILITY CRITERIA / BENCHMARKS
 One Time Restructuring for MSMEs is available to entities which are viable
or potentially viable. Therefore, any reference for restructuring under this
scheme for MSMEs should first be tested for viability.
 The viability of the account, inter alia, shall be considered

based on the following:
 Projected Balance Sheet and Profit & Loss account covering the
period of repayment proposed for restructured debt.
A. Indicative viability benchmarks & other milestones

(for proposals above Rs 10 lakhs and up to Rs 50.00 lakhs):
Indicative viability Benchmark

Viable Yes
Current ratio 1.1:1 (MIN)
DSCR during the first 2 years of 1:1 (MIN)

rehabilitation (applicable for TL)
DSCR after 2 years (applicable for TL) 1.25:1 (MIN)
Page 13 of
B. Indicative viability benchmarks & other milestones (for
proposals above Rs 50 lakhs and up to Rs 10.00 Crs):

Viable Yes

Long term Debt/EBIDTA 4:1 (MAX)
FACR 1:1 (MIN)
Interest Coverage ratio 1.25:1 (MIN)
Break Even Point Unit should achieve
break- even level at a
capacity utilization, not
exceeding 85%
Promoters contribution* For FITL & WCTL-Nil
For additional facilities

other than FITL &
WCTL-15%
C. Indicative Viability benchmarks & other milestones

(10cr & above upto 25 crores)

Viable Yes
FACR 1:1 (MIN)
Page 14 of
Break Even Point Unit should achieve
exceeding 85%
Promoters contribution* For FITL & WCTL-Nil

other than FITL &
WCTL-15%
* This stipulation is the minimum. Sanctioning Authority may stipulate higher
sacrifice by promoters depending on the riskiness of the project and
promoters’ ability to bring in higher sacrifice amount.
#The financial ratios stipulated above have to be achieved as an when the unit
becomes viable within the maximum period of 2 years. Sanctioning Authority
shall obtain the projections atleast for the period in which the unit shall become
viable.
1. ZOCAC-I shall have powers to consider waiver of the above any two
prescribed benchmark ratios( for exposure above Rs 50 Lakhs) during
the specified period on case to case basis. In case waiver in more than
two ratios is required then same shall be considered at ZOCAC-II.
Such cases shall be accorded exemption for non-achievement up to
31.12.2023 after recording proper justification in file.
2. Due to COVID impact/restrictions/extensions allowed by Government ,in
case borrower is not able to furnish audited financials for FY ending
31.03.2021 then sanctioning authority may accept:
 For exposures upto Rs.1 crore – Self certified financials
 For exposures above Rs.1 crore up to Rs.10 crores, CA certified
financials
 For exposures above Rs.10 crores –provisional financials certified
by CA/Statutory Auditor(SA)
3. However undertaking shall be obtained from the borrower that variation
shall be not be more than 5 % between the self- certified/provisional as
the case may be with the audited balance sheet
4. Further, efforts to be made to obtain the audited financials at the earliest.
Page 15 of
13 DISCLOSURES AND CREDIT REPORTING
Bank is required to disclose in its published Quarterly Balance Sheet, under
“Notes on Accounts", information relating to number and amount of advances
restructured under this scheme. Bank must disclose the total amount outstanding
in all the accounts/facilities of borrowers whose accounts have been restructured
along with the restructured part or facility. This means even if only one of the
facility/account of a borrower has been restructured, the bank should also
disclose the entire outstanding amount pertaining to all the facilities/ accounts
of that
particular borrower.
14 OTHERS
 As a general rule, barring the above one-time exception, any MSME account
which is restructured must be downgraded to NPA upon restructuring and
will slip into progressively lower asset classification and higher provisioning
requirements as per extant IRAC norms. Such an account may be considered
for up-gradation to ‘standard’ only if it demonstrates satisfactory performance
during the specified period.
 ‘Specified Period’ means a period of one year from the commencement of
the first payment of interest or principal, whichever is later, on the credit
facility with longest period of moratorium under the terms of restructuring
package. ‘Satisfactory Performance’ means no payment (interest and/or
principal) shall remain overdue for a period of more than 30 days. In case of
cash credit / overdraft account, satisfactory performance means that the
outstanding in the account shall not be more than the sanctioned limit or
drawing power, whichever is lower, for a period of more than 30 days.
 In case of accounts under consortium / MBA, lenders should sign an Inter-
Creditor Agreement (ICA).
 All other instructions applicable to restructuring of loans to MSME borrowers

shall continue to be applicable (RBI Guidelines)
********************************************
Page 16 of
ANNEXURE II
FREQUENTLY ASKED QUESTIONS (FAQs) for STAFF –
1. How to capture restructuring details in CBS?

Branches are required to enter Restructuring details in CBS through ‘RSAM’
menu option by selecting MSME Restructuring option on the date of
restructuring of account.
2. Can General Banking Branches can restructure MSME accounts

under this scheme?
Yes, for accounts having aggregate exposure up to Rs 10.00 Lakh, within the
vested loaning powers at General Banking Branches without increase in
existing exposure.
3. Whether restructuring under this scheme will be reflected in CICs

reports?
Yes, it will be reflected in reports of CICs.
4. Is concession in Interest rate can be provided at field level?
No concessions in interest rate shall be considered by field functionaries in
MSME restructured accounts.
5. If the borrower is not registered in the Udyam Registration portal,

can those accounts be restructured under this scheme?
Yes, they can be restructured under this scheme provided that registration
shall be required to be completed before the date of implementation of the
restructuring plan for the plan to be treated as implemented.
6. If the account is already restructured under other than OTR and

restructuring packages has got failed, whether it can be
restructured again.
Yes, it can be restructured under this scheme subject to fulfilment of eligibility
as mentioned above.
7. If the account is already restructured under MSME One-time

restructuring scheme, whether it can be restructured again.
Page 17 of
No, it cannot be restructured under this scheme again. However, in respect of
accounts of borrowers which were restructured under MSME OTR scheme, as
a one-time measure, it is permitted to review the working capital sanctioned
limits and / or drawing power based on a reassessment of the working capital
power shall be subject to review by the lending institution at least
on a half yearly basis and the renewal / reassessment at least on
an annual basis. The annual renewal/reassessment shall be expected to
suitably modulate the limits as per the then-prevailing business conditions.
8. Whether the accounts where review of the working capital

sanctioned limits and / or drawing power based on a
reassessment of the working capital cycle, reduction of margins,
etc is done is treated as Restructured.
No, such accounts may not be treated as restructuring and these accounts are
not to be captured again in CBS.
9. Whether the proposal under this scheme is to be routed through

FRR committee formed.
No, as the proposal is under One time restructuring, it shall be processed and
sanctioned as mentioned in implementation and loan discretionary power of
SOP.
10. In accounts where concession in rate of interest is already

prevailing, after restructuring whether it will continue or not?
Such concession will be allowed even after restructuring under MSME OTR
scheme till validity of the sanctions for such concessions.
11. What will be the tenure including moratorium for FITLs opened
under this scheme?
Maxium tenure of FITLs opened under this scheme is 24 months including
moratorium period of 6 months.
12. If account is already sanctioned facility under GECL, can it be

restructured under this scheme?
Yes, Subject to fulfillment of other eligibility criteria under this scheme.
However, GECL facility cannot be considered for restructuring under
Page 18 of
this scheme. Further, the requirement of restructuring in addition to
moratorium be assessed meticulously.
13. If account is already sanctioned facility under CECF, can it be

restructured under this scheme?
Yes, Subject to fulfilment of other eligibility criteria under this scheme.
However, the requirement of restructuring in addition to moratorium be
assessed meticulously.
14. If account has taken moratorium for interest/installment for the

period 01.03.2020 to 31.08.2020, is the account eligible for onetime
restructuring, can it be provided both?
Yes, the account can be restructured even if it has taken moratorium.

However, the requirement of restructuring in addition to moratorium be
assessed meticulously.
15. What is the last date of invocation of Onetime restructuring

scheme?
The restructuring of the borrower account should be invoked by
September 30, 2021.
16. What is the last date of implementation of Onetime restructuring

scheme?
17. If account is standard as on 31.03.2021, can it be restructured

under this scheme?
Yes, it can be restructured; the borrower’s account should be ‘standard asset’
as on March 31, 2021.
18. Account is NPA as on 01.04.2021, can it be restructured under this

scheme.
Yes, asset classification of borrowers classified as standard may be retained as
such, whereas the accounts which may have slipped into NPA category
between April 01, 2021 and date of implementation may be upgraded as
‘standard asset’, as on the date of implementation of
Page 19 of
the restructuring plan. The asset classification benefit will be available only if
the restructuring is done as per provisions of this circular.
19. Is provisioning is required for the accounts restructured under

this scheme.
Upon implementation of the restructuring plan, the bank shall keep provision
of 10 percent of the residual debt of the borrower over and above the provision
already held by them.
20. How Restructuring is captured in CBS?

RESTRUCTURED ACCOUNT MAINTENANCE THROUGH RSAM
MENU IN CBS
RSAM MENU OPTION:
Purpose: To maintain data in respect of restructured facilities only. Branches

should not enter data pertaining to the other facilities of the customer those are
not restructured. System is capable to identify other facilities of the same
customer for reporting purpose.
Navigation: RSAM menu facilitates addition, modification, deletion &

inquiry of records.
Screen: Implication of various fields of the RSAM screen and their

validation aspects are described below:
Page 20 of
MSME & Mid Corporate Credit Division, Head Office, Wing ‘B’, 4th Floor, Sector
Account Number – Valid account no is one which has been rescheduled in CBS
i.e. the Schedule No in payment-details is other than 01. In CBS, it is thus
necessary to re-phase the restructured facility first and then add it through RSAM.
Repay Start Date – This date need not be entered as the system will automatically
pick up the same from E-details of the account.
Restruct Reason – Suitable codes from the list should be filled in.
Deleted? – This field is not accessible. It only populates the status of deletion of a
particular record.
Multiple Records? – This field is not accessible.
Date of Restructure – This should be the date on which account is

rephrased/rescheduled in the system.
Remarks – This is a free text column to be filled with any relevant information
pertaining to the account.
CDR Flag – This flag should be Y only for the accounts restructured under CDR
mechanism where multiple banks are involved. For MSME accounts, this flag
would always be N. Necessary checks have been put in the system.
Page 21 of
Cut Off Date – This is a mandatory field. For all restructured customers of Rs.1Cr &
above category, the Cut Off date should be a past date i.e. the date, balance as on
which has been referred in the restructuring proposal. The Cut Off date for below 1 Cr
category of customers should be same as the
Date of Restructure. The Cut Off Date is relevant for all those customers where
Diminishing Fair Value (DFV) or provision on account of sacrifice is required to be
calculated. As per extant guidelines, DFV is computed for customers with exposure
Rs.1 Cr & above.
Exit CDR – This flag is by default shown as N and relevant for only those accounts
where CDR Flag is Y.
Page 22 of
ANNEXURE III
FREQUENTLY ASKED QUESTIONS (FAQs) for PUBLIC –
1) If account is standard as on 31.03.2021, can it be restructured

under this scheme?
Yes, it can be restructured; the borrower’s account should be ‘standard asset’ as
on March 31, 2021.
2) Whether restructuring under this scheme will be reflected in CICs

reports?
Yes, it will be reflected in reports of CICs.
3) What are the eligibility criteria under this scheme?

i. The borrower should be classified as a micro, small or medium
enterprise as on March 31, 2021 in terms of the Gazette Notification
S.O. 2119 (E) dated June 26, 2020.
ii. The borrowing entity is GST-registered on the date of implementation of
the restructuring. However, this condition will not apply to MSMEs
that are exempt from GST-registration. This shall be determined on the
basis of exemption limit obtaining as on March 31, 2021.
iii. The aggregate exposure, including non-fund based facilities, of all
lending institutions to the borrower does not exceed ₹25 crore as
on March 31, 2021.
iv. The borrower’s account was a ‘standard asset’ as on March
31, 2021.
v. The borrower’s account was not restructured in terms of the circulars
DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020;
DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020; or
DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019
(collectively referred to as MSME restructuring circulars).
vi. The restructuring of the borrower account is invoked by
September 30, 2021. For this purpose, the restructuring shall be
treated as invoked when the lending institution and the borrower agree
to proceed with the efforts towards finalizing a restructuring plan to be
implemented in respect of such borrower. The decisions on
applications received by the lending
Page 23 of
institutions from their customers for invoking restructuring under this
facility shall be communicated in writing to the applicant by the
lending institutions within 30 days of receipt of such applications. The
decision to invoke the restructuring under this facility shall be taken by
each lending institution having exposure to a borrower independent
of invocation decisions taken by other lending institutions, if any,
having exposure to the same borrower.
vii. The restructuring of the borrower account is implemented
within 90 days from the date of invocation.
viii. If the borrower is not registered in the Udyam Registration portal, such
registration shall be required to be completed before the date of
implementation of the restructuring plan for the plan to be treated as
implemented.
ix. Upon implementation of the restructuring plan, the lending institutions
shall keep provision of 10 percent of the residual debt of the
borrower.
x. All other instructions specified in the circular
DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020 shall
remain applicable.
4) What are the documents required to be submitted by the borrower

under this scheme?
 Last two years audited balance sheets (wherever applicable as per IT
Act) of the units along with income tax/sales tax return etc.
 Projected balance sheets till the achievement of benchmark ratio in
case of working capital limits and for the period of the loan in case of
term loan.
 Sales achieved during the current financial year up to the date of
submission of application or Provisional Balance sheet as at Previous
Quarter End. Provisional balance sheet of FY 2020-21, if audited
balance sheet is not available.
 Asset & Liability statement of Proprietor/ Partners/ Directors.
 If funds proposed to be infused by borrower, please specify Sources.
 Detailed Particulars of securities primary/collateral proposed, if any.
Page 24 of
 Details of all liabilities of the enterprise, including the liabilities owed
to the State or Central Government and unsecured creditors, if any.
 Supporting details for the suggested remedial measures with the
estimated time frame by the Enterprise to justify the action plan
/solution.
5) If the account is already restructured under other than OTR and
restructuring packages has got failed, whether it can be
restructured again.
Yes, it can be restructured under this scheme subject to fulfilment of eligibility
as mentioned above.
6) If the account is already restructured under MSME One time

restructuring scheme, whether it can be restructured again.
No, it cannot be restructured under this scheme again. However, in respect of
accounts of borrowers which were restructured under MSME OTR scheme, as
a one-time measure, it is permitted to review the working capital sanctioned
limits and / or drawing power based on a reassessment of the working capital
power shall be subject to review by the lending institution at least
on a half yearly basis and the renewal / reassessment at least on
an annual basis. The annual renewal/reassessment shall be expected to
suitably modulate the limits as per the then-prevailing business conditions.
7) If account has taken moratorium of interest/installment for the

period 01.03.2020 to 31.08.2020, is it restructuring?
No, the same is not restructuring and FITL can be created for the period
of moratorium to be paid by 31.03.2021.
8) If borrower is not GST Registered but is eligible for GST

Registration can be restructured under this scheme.
No, the borrowing entity should be GST-registered on the date of
implementation of the restructuring.
9) If borrower is not GST Registered and is under GST exemption

category, can it be restructured under this scheme?
Page 25 of
Yes, this shall be determined on the basis of exemption limit obtaining as on
March 31, 2021.
10)If the borrower is not registered in the Udyam Registration portal,
can those accounts be restructured under this scheme?
Yes, they can be restructured under this scheme provided that registration
shall be required to be completed before the date of implementation of the
restructuring plan for the plan to be treated as implemented.
11)If borrower is having total exposure of Rs 25.00 crore, is it eligible

for Restructuring?
Yes, the aggregate exposure, including non-fund based facilities, of banks and
NBFCs to the borrower does not exceed ₹25 croreas on March 31, 2021.
12)If account is not categorized under MSME but fulfills other

eligibility criteria, can it be restructured under this scheme?
No, this scheme is specifically for MSME borrowers only.
13)What is the last date of invocation of Onetime restructuring

scheme?
The restructuring of the borrower account should be invoked by
September 30, 2021.
14)What is the last date of implementation of Onetime restructuring

scheme?
15)Sources –
RBI CIRCULARS regarding MSME Restructuring Dated 01.07.2015,
17.03.2016, 01.01.2019, 11.02.2020, 06.08.2020 & 05.05.2021.
Page 26 of
Appendix 3.1
SOP for Restructuring of MSME Advances up to Rs 10 lakhs
1. The borrowing entity is GST-registered on the date of implementation of the

restructuring. However, this condition will not apply to Individuals and small
business advances that are exempt from GST-registration. This shall be
determined on the basis of exemption limit obtained as on 31.03.2021.
2. Data of all eligible (Indicative list) units (i.e. Up to Rs 10.00 lakhs) as on
31.03.2021 to be extracted as per the eligibility parameters set for
Restructuring of MSMEs Advances.
3. Offer letters i.e. Restructuring / Rephasement of Term Loan Instalments / Re-
assessment of Working Capital limit are to be printed for all eligible customers
as per the prescribed format.
4. Bulk SMS shall be sent to the eligible customers advising them about the
availability / offer of restructuring scheme to Individuals and small business
advances.
5. Branches will examine the offer letter for its correctness. Eligibility for
restructuring should be established and send the offer letter by an e- mail/ post
/ WhatsApp to the eligible borrowers expeditiously.
6. Revisions in margins - margin for stock and receivables may be reduced by
10% from margin as per existing sanction by the Sanctioning Authority with a
minimum floor of 10% on stock and 15 % on receivables.
7. No prescription of benchmark ratios.
8. Customer to submit acceptance of offer letter to the Branch through e- mail/
post / WhatsApp.
9. Customer will also be provided with an “opt out” option.
10. Proposal shall be prepared as per the Common Appraisal formats.
11. To be reported in LSS, duly scrutinized copy to be kept on record.
12. Arrangement letter with terms and conditions as per the format shall be
delivered to those borrowers who have accepted the offer and acceptance of
revised terms and conditions of restructuring to be obtained.
13. Customers may be informed to return the scanned copy of Arrangement letter
duly signed through WhatsApp No………… / to email id as an additional
option so as to consider
for Restructuring.
Page 27 of
14. Restructuring exercise may be carried out on the basis of Acceptance of
Arrangement Letter & terms and conditions, wherever additional funding
requirement is not there.
15. If additional funding is involved, all related documents are to be obtained /
creation of security charge / perfection of securities to be completed within the
implementation period i.e 90 days from date of invocation.
16. An option to execute the Documents digitally (in places wherever such facility
is available) may be provided with a provision of 90 days’ time period for
completing the documentation/ perfection of securities as a special case due to
resurgence of Covid-19.
Page 28 of
Appendix 3.2
SOP for Restructuring of Individuals and Small Business Advances above

Rs 10.00 Lakh and upto Rs 25.00 Crores
1. The borrowing entity is GST-registered on the date of implementation of the

restructuring. However, this condition will not apply to Individuals and small
business advances that are exempt from GST-registration. This shall be
determined on the basis of exemption limit obtaining as on 31.03.2021.
2. Data of all eligible (Indicative list) units as on 31.03.2021 to be extracted as
per the eligibility parameters set for Restructuring of Individuals and small
business advances, from Bank’s data combined with data received from
Bureau records of CIC.
3. Viability of the unit should be established as per pre-defined norms. Bank has
already dispensed with the TEV study in case of proposals upto Rs 10.00
crores and for above 10 crores where no additional finance is to be sanctioned.
(FITL not to be reckoned as additional finance for this purpose ) .However,
Bank shall have right to carry out TEV study if any additional exposure is
granted by the Bank for capacity expansion in case of exposure is 10 Crores
and above.
4. For below 10 Crores , financial viability shall be carried out by the sanctioning
authority
5. Bulk SMS to be sent to the eligible customers advising them about the
availability / offer of restructuring scheme to Individuals and small business
advances.
6. Offer letters to be generated for all eligible customers as per the prescribed
format.
Branches/PLPs/MCCs will examine the offer letter for its correctness.
Eligibility for restructuring should be established and send the offer letter by
an e-mail/ post / WhatsApp to the eligible borrowers expeditiously.
7. Customer to submit acceptance of offer letter to the Branch through e- mail/
post / WhatsApp.
8. Customer will also be provided with an “opt out” option.
9. Proposal is prepared as per the Common Appraisal formats available for
facilities upto 25 crores.
10. Customers may be informed to return the scanned copy of acceptance letter
duly signed through WhatsApp No………… / to email id
Page 29 of
……………………….. /post /by hand as an additional option so as to
consider for Restructuring.
11. Restructuring exercise may be carried out on the basis of Acceptance of Letter
& terms and conditions, wherever only reschedulement/ granting of
moratorium is proposed in Resolution plan
12. If additional funding , conversion in any other credit facility , relaxations in
working capital assessment is involved, all related documents are to be
obtained / creation of security charge / perfection of securities to be completed
within 90 days of invocation of the plan.
13. An option to execute the Documents digitally (in places wherever such facility
is available) may be provided within 90 days from the date of invocation for
completing the documentation/ perfection of securities
Page 30 of
ANNEXURE 3.3
OFFER CUM ACCEPTANCE LETTER FOR RESTRUCTURING

(To be issued in duplicate)
To
(Borrower’s name & address)
Letter No.: Date:
Dear Sir / Madam,
TL ACCOUNT NO:
OFFER LETTER FOR RESCHEDULING OF TERM LOANS UP TO RS 10
LAKHS
In terms of RBI guidelines dated 05.05.2021, your credit facility is eligible for
rescheduling of instalments by extension of repayment period of 6 / 12/ 18/ 24 months
including a moratorium period of 6 / 12 /18 / 24 months.
2. The said facilities will be available to you upon your opting-in herewith and
submission of application form enclosed.
3. You may return the acceptance / opt out letter duly signed through WhatsApp to
No……………… / to email id……………………
Yours faithfully,
BRANCH MANAGER
…………………………………………………………………………………………
………
Page 31 of
ACCEPTANCE LETTER
I/We accept the offer and request you to arrange for rescheduling our Term loan instalments by extension of
I / We are at present finding difficulty to service the account properly due to resurgence of Covid-19 second wa
I/We shall furnish any other information that may be required in connection with the above. We shall execute th
Date: Place Authorized Signatory Name of the company
OR
I/We do not require the facility and express our intention to opt out.
Date: Authorized
Signatory
Place: Name of the
company/firm
Signature of Borrowers
Page 32 of
पुनर् र चना के लिए प्रस्ताव-सह-

स्वीकृ लि पत्र
से वा में (दो प्रतियोों में जारी तिया
जाना चातिए)
(उधारििाा
िा नाम एवों पिा)
तदनाों ि:
पत्र क् रमाों ि :
तप्रय मिोदय/मिोदया,
मीयादी ऋण खािा क् रमाांक .........................

10 िाख रुपए िक के मीयादी ऋण ा ं की अवलि के पुनलनरिारर्ण हेिु
प्रस्ताव पत ् र
भारिीय ररज़वा बैंि िे तदनाोंि 5 मई 2021

िे तदशातनदेशोों िे अनुसार, आपिी ऋण सुतवधा
6/12/18/24 मिीनोों िी अतधस्थगन अवतध सतिि 6/12/18/24
मिीनोों िी चुिौिी अवतध बढ़ािर तिस्ो ों िे
पुनतनाधाारण िे तिए पात्र िै।
2. उक्त सुतवधाएँ आपिे द्वारा यि तविल्प चुनने और सोंिग्न आवेदन

प्रस्ुि िरने पर उपिब्ध िोगी।
3. आप व्हाट्सएप नोंबर ........................../ई-मेि ................... िे जररए स्वीिृ

ति/आप्ट आउट पत्र वापस
िर सििे िैं।
भवदीय,
शाखा प्रबोंधि
…………………………………………………………………………………………………स्वीकृ
लि पत्र
मैं/िम इस प्रस्ाव िो स्वीिार िरिा हँ/िरिे िैं और आपसे 6/12/18/24 मिीनोों िी अतधस्थ
2. मैं/िम इस समय िोतवड-19 मिामारी िी दू सरी ििर िे िारण खािे िी ब्याज अदा िरन
3. मैं/िम उपयुाक्त िे सोंबोंध में अपेतिि िोई भी अन्य सूचना प्रस्ुि िरों ग
लदनाांक : प्रालिकृ ि हस्ताक् षर्किार

स्थान कां पनी/सांस्था का नाम :
अथवा
मुझे/हमें उक्त सुलविा की आवश्यकिा नही ां है और् हम आप्ट आउट कर्ने की अपनी
मांशा व्यक् त कर्िे हैं ।
Page 33 of
तदनाोंि : प्रालिकृ ि
हस्ताक्षर्कि ार
स्थान : कां पनी/सांस्था का नाम
Page 34 of
APPLICATION FOR RESTRUCTURING UNDER RESOLUTION
FRAMEWORK – 2.0
(For Existing Loan Exposure up to Rs 10.00 Lakh)
Name & address of

the Unit &
Proprietor/
Partner / Director
Pvt. Ltd.
Constitution √ Proprietary Partnership Others
Ltd. Company
Contact No. E mail: Land
Line:
Mobile
:
GST Registration No.
Udyam Registration Certificate No.
PAN
Activity Mfg. / Trading / Services / Others
Brief of Business activity
I have availed following loan facilities from the Bank to run my above firm.
Account No. Facility Limit Balance
I am at present finding difficulty to service the account properly due to resurgence of Covid-
19 second wave. However, my Business activity is viable and capable of generating cash
accruals within 12 months.
The financials of the Unit are as under.

Financial year Net Sales/projected Sales Net Profit / Projected
Profit
2019-20
2020-21
2021-22 (Up to the
previous month)
I request you to arrange for rescheduling our Term loan instalments by extension of
repayment period of 6 /12 / 18/ 24 months including a moratorium period of 6 / 12 /18
/ 24 months as per RBI guidelines dated 05.05.2021.
Date: ……………………
Place: ---------------------- Signature of Borrowers
Page 35 of
समािान ढाांचा-2.0 के अांिगरि पुनर् र चना के लिए आवेदन

(10.00 िाख रुपए िक के विरमान ऋण ां के लिए)
इिाई एवों
मातिि/भागीदार/
तनदे शि िा
नाम एवों पिा
प्राइवे ट तितमटे ड
सोंरचना √ स्वातमत्व भागीदार अन्य
तितमटे ड िों
पनी
सांपकर नांबर् ई मेि : िै
ंडिाइन:
म बाइि :
जीएसटी पांजीकर्ण सांख्या
उद्यम पांजीकर्ण प्रमाणपत्र सांख्या
पै न
गलिलवलि तवतनमााण/व्यापार/सेवाएँ /अन्य
खािा सोंख्या सोंिेप
सु तवधा में
सीमा शे ष रातश
व्यवसाय गतितवतध
उपयुाक्त सोंस्था िो चिाने िे तिए मैंने बैंि
ने तनम्नतिखखि ऋण सुतवधाएों प्राप्त िी िै।
मैं इस समय िोतवड-19 मिामारी िी दू सरी ििर

िे िारण खािे िी ब्याज अदा िरने
में
ितिनाई मिसूस िर रिा हँ। िथातप मेरे व्यवसाय गतितवतध
अथािम िै और 12 मिीनोों िे भीिर निद उपचय
िरने में सिम िै।
इिाई िे तवत्तीय तववरण तनम्नानुसार िैं।
मैं भारिीय ररज़वा बैंि िे 5 मई 2021 िे तदशातनदेशोों

िे अनुसार 6/12/18/24 मिीनोों िी अतधस्थगन अवतध सतिि
6/12/18/24 मिीनोों िी चुिौिी अवतध बढ़ािर िमारे
मीयादी ऋण तिस्ोों िा पुनतनाधाारण िरने िा
Page 36 of
तबक् री/पूवाानुमातन िाभ
ि तबक् री
2019-20
2020-21
अनुरोध िरिा हँ।
तदनाों ि: ……………………
स्थान: ---------------------- उधारििााओों िे
िस्ािर
Page 37 of
ANNEXURE 3.4
OFFER CUM ACCEPTANCE LETTER FOR RESTRUCTURING

(To be issued in duplicate)
To
(Borrower’s name & address)
Letter No.: Date:
Dear Sir / Madam,
CC / OD ACCOUNT NO:
OFFER LETTER FOR RESTRUCTURING OF CC/OD LIMITS UP TO Rs 10
LAKHS
In terms of RBI guidelines dated 05.05.2021, your credit facility is eligible for
restructuring by way of Sanction of Funded Interest Term Loan (FITL) / Working
Capital Term Loan (WCTL) / Additional Working Capital facilities.
2. The restructuring facility will be available to you upon your opting-in herewith
and submission of application form enclosed.
3. You may return the acceptance / opt out letter duly signed through WhatsApp to
No……………… / to email id……………………
Yours faithfully,
BRANCH MANAGER
…………………………………………………………………………………………
……
Page 38 of
ACCEPTANCE LETTER
I/We accept the offer and request you to arrange for restructuring of our CC / OD account by granting FITL
I / We are at present finding difficulty to service the account properly due to resurgence of Covid-19 second wa
I/We shall furnish any other information that may be required in connection with the above. We shall execute th
Date: Place Authorized Signatory Name of the company
OR
I/We do not require the facility and express our intention to opt out.
Date: Authorized
Signatory
Place: Name of the
company/firm
Signature of Borrowers
Page 39 of
पुनर् र चना के लिए प्रस्ताव-सह-
स्वीकृ लि पत ् र
से वा में (दो प्र तियोों में जारी तिया
जाना चातिए)
(उधारििाा
िा नाम एवों पिा)
तदनाों ि:
पत्र क् रमाों ि :
तप्रय मिोदय/मिोदया,
नकदी ऋण/ओवर्डर ाफ ् ट खािा क् रमाांक ......................

10 िाख रुपए िक की नकदी ऋण/ओवर्डर ाफ ् ट सीमाओ ा ं की पुनर् र चना के लिए
प्रस्ताव पत ् र
भारिीय ररज़वा बैंि िे तदनाों ि 5 मई 2021 िे

तदशातनदेशोों िे अनुसार, आपिी ऋण सुतवधा तनतधि ब्याज
मीयादी ऋण (एफआईटीएि)/िायाशीि पूोंजी मीयादी ऋण
(डब्ल्यूसीटीएि)/अतिररक्त
िायाशीि पूोंजी सुतवधाओों िे जररए पुनरा चना िे तिए पत्र
िै।
2. उक्त सुतवधाएँ आपिे द्वारा यि तविल्प चुनने और सोंिग्न आवेदन

प्रस्ुि िरने पर उपिब्ध िोगी।
3. आप व्हाट्सएप नोंबर ........................../ई-मेि ................... िे जररए

स्वीिृ ति/आप्ट आउट पत्र वापस िर सििे िैं।
भवदीय,
शाखा प्रबोंधि
…………………………………………………………………………………………………
स्वीकृ लि पत्र
मैं/िम इस प्रस्ाव िो स्वीिार िरिा हँ/िरिे
िैं और आपसे एफआईटीएि/डब्ल्यूसीटीएि/अतिररक्त निदी
ऋण/ओवरडर ाफ्ट सीमाएों सोंस्वीिृ ि िर िमारे निदी ऋण/ओवरडर
ाफ्ट खािे िी पुनरा चना िरने िा अनुरोध
िरिा हँ/िरिे िैं।
2. मैं/िम इस समय िोतवड-19 मिामारी िी दू सरी ििर
िे िारण खािे िी ब्याज अदा िरने में
ितिना ई मिसूस िर रिा हँ/िर रिे िैं।
3. मैं/िम उपयुाक्त िे सोंबोंध में अपेतिि िोई भी अन्य

सूचना प्रस्ुि िरों गा/िरें गे। िम पुनरा चना िेिु
अपेतिि ऋण दस्ावेज़ प्रस्ुि िरों गा/िरें गे और
विामान सुतवधाओों िे तिए उपिब्ध सभी
प्रतिभूतियाँ
(प्राथतमि/सोंपातवाि)
प्रस्ुि िरें गे।
लदनाांक : प्रालिकृ ि
स्थान : हस्ताक् षर्किारकां
पनी/सांस्था का
Page 40 of
नाम :
अथवा
मुझे/हमें उक्त सुलविा की आवश्यकिा हम आप्ट आउट कर् ने की अपनी मांशा

नही ां है और् व्यक् त कर्िे हैं।
लदनाांक : प्रालिकृ ि
स्थान : हस्ताक् षर्किार
कां पनी/सां स्था का
नाम
Page 41 of
APPLICATION FOR RESTRUCTURING UNDER RESOLUTION
FRAMEWORK – 2.0
(For Existing Loan Exposure up to Rs 10.00 Lakh)
Name & address of

the Unit &
Proprietor/
Partner / Director
Pvt. Ltd.
Constitution √ Proprietary Partnership Others
Ltd. Company
Contact No. E mail: Land
Line:
Mobile
:
Udyam Registration Certificate No.
PAN
Activity Mfg. / Trading / Services / Others
Brief of Business activity
I have availed following loan facilities from the Bank to run my above firm.
Account No. Facility Limit Balance
I am at present finding difficulty to service the account properly due to resurgence of Covid-19
second wave. However, my Business activity is viable and capable of generating cash accruals
within 12 months.
The financials of the Unit are as under.
Financial year Net Sales/projected Net Profit /
Sales Projected Profit
2019-20
2020-21
2021-22 (Up to the
previous month)
I request you to arrange for rescheduling our Term loan instalments by extension of repayment
period of 6 /12 / 18/ 24 months including a moratorium period of 6 / 12 /18 / 24 months as per
RBI guidelines dated 05.05.2021.
Date: ……………………
Place: ---------------------- Signature of Borrower(s)
Page 42 of
समािान ढाांचा-2.0 के अांिगरि पुनर् र चना के लिए आवेदन

(10.00 िाख रुपए िक के विरमान ऋण ां के लिए)
इिाई एवों
मातिि/
भागीदार/तनदे
शि िा
नाम एवों पिा
प्राइवे ट तितमटे ड
सोंरचना √ स्वातमत्व
भागीदारी लिलिटे अन्य
ड ि
ों पनी
सांपकर नांबर् ई मेि िैंडिाइ
: न:
म बाइि :
जीएसटी पांजीकर्ण सांखय ् ा
उद्यम पंजीकरण प्रमाणपत्र संख्या
पैन
गलिलवलि
खािा सोंख्या तनमाा
सीमा ण/व्यापार/सेवाएँ
सु तवधा शे ष /अन्य रातश
सोंिेप में
व्यवसाय गतितवतध
उपयुाक्त सोंस्था िो चिाने िे तिए मैंने बैंि ने
तनम्नतिखखि ऋण सुतवधाएों प्राप्त िी िै।
मैं इस समय िोतवड-19तनवि

मिामारी िी दूतनवि सरी ििर
तवत्त वषा
िे िारण खािे िी ब्याज अदा िरने में
तबक् री/पूवाा नुमातनि िाभ/पूवाा नुमात
ितिनाई मिसूस िर रिा हँ। िथातप मेरे व्यवसाय गतितवतध
तबक् री नि िाभ
अथा िम िै और 12 मिीनोों िे भीिर निद उपचय
2019-20
िरने
2020-21 में सिम िै।
इिाई िे तवत्तीय तववरण तनम्नानुसार िैं। .
2021-22 (तपछिे
मिीने िि)
मैं भारिीय ररज़वा बैंि िे 5 मई 2021

िे तदशातनदेशोों िे अनुसार
एफआईटीएि/डबल्यूसीटीएि/अतिररक्त निदी ऋण/ओवरडर ाफ्ट सीमाएों
सोंस्वीिृ ि िर िमारे निदी ऋण/ओवरडर ाफ्ट
खािे िी पुनरा चना िरने िा अनुरोध िरिा हँ।
Page 43 of
लदनाांक : ……………………
स्थान : ---------------------- उिार्किारओ ां के हस्ताक् षर्
Page 44 of
Annexure-4
Index Page No
Common Appraisal format for Restructuring of advances up to ₹10 42-46
lakhs
Common Appraisal format for Restructuring of advances above 47-58
₹10 lakhs & up to ₹10.00 Cr.
Common Appraisal Memorandum for Restructuring above ₹10 Crores 59-71
to ₹25 Crores.
Arrangement letter - (For Restructuring of Advances up to ₹10 72-74
lakhs)
Arrangement letter - (For Restructuring of advances above ₹10.00 75-77
lakhs)
4
Common Appraisal format for Restructuring of advances up to ₹10
lakhs (For MSMEs, Loans to Individuals for Business purpose
including units engaged in Retail / Wholesale Trade)
(₹ in Lakh)
1. Borrower/Company Profile:
Circle/ Zone: Branch: Sol ID:
Name of the Unit
Name of Promoter(s)/
Proprietor/ Partner(s) /Key
Persons(s):
Priority Sector: Yes/No
Activity:
MSME Classification: Micro / Small / Medium
Invt in P&M, Equip................./
Turnover………………
( as on )
Location:
i) Regd. Office Address:
ii) Factory Address:
Mobile No.:
Telephone No.:
GSTIN: Eligible/ Not Eligible
PAN:
Udyam Registration No.
CIC Report Taken
Dated:
Remarks :
Date of incorporation /
establishment:
Banking with us since:
Coverage under any guarantee
schemes (pl. specify)
Any Govt. sponsored schemes
(if so Specify)
Date of last Review/ Renewal:
IRAC /SMA Status as on …….
Whether restructured earlier, if
yes, Date of restructure
2. Present Proposal:
For Sanction of:

For approval of
4
3 Brief Profile of
4. Position of account:
(₹ in lakhs)
Account No Facility Limit DP Outstanding Irregularity
5. Performance Analysis:
(₹ in lakhs)
S.N. Parameters Last year Current year
Estimated Actual Estimates
A Sales
B Debit Summations
C Credit Summations
D Percentage of sales routed through account
6. Justification and need for restructuring:
7. a) Assessment of Working Capital: As per Annexure-1.
b) Justification for renewal of CC account (if applicable)
c) Rescheduling of existing Term Loan (if applicable)

Number of TL instalments due
Number of TL instalments paid
Number of instalments in arrears
Amount of interest in arrears
Justification:
Repayment schedule:
Original Revised
4
8 Indicative viability benchmarks & other
Indicative viability Benchmark Compliance Status
Viable Yes
Compliance of terms of previous sanction Yes
Closure of Current account with other Banks, if Yes
any
9. Pricing:
Facility RLLR Existing Rate Card Rate Proposed rate
Spread Effective Spread Effective Spread Effective
Rate Rate Rate
Cash Credit
Term Loan
FITL
WCTL
10. Repayment:
Facility Moratorium Period Repayment amount and number of instalments
FITL
WCTL
TL
11. Security: Primary:

Nature of facility Security
12. Remarks / Other covenants / Recommendations:

 The unit has complied with the terms and conditions of the previous loan.
 Arrangement letter will be exchanged in acceptance of revised terms and
conditions of restructuring.
 CGTMSE will be informed of the revised terms and conditions of restructuring.
 The borrowing unit is not in category of willful default, fraud and malfeasance.
 Extant instructions pertaining to MSME restructuring have been complied with. The
Bank’s right to exercise recompense (Right to recompense) would be included in the
sanction letter to the borrower.
13. Recommended for sanction / approval:

For Sanction of
For approval of
Details Appraised & Assessed & Sanctioned by

Recommended by Recommended by
Signature
Name
PF No.
Designation
Date
4
Annexure-1
Name of the Borrower:
1. Assessment of FITL:
(₹ in lakhs)
i Overdue interest in CC/TL
FITL LIMIT
2. Assessment of WCTL:
(₹ in lakhs)
i. Outstanding in CC account
ii. LESS: Unpaid Interest if any
iii. PRINCIPAL DUES (i-ii )=A
iv. Value of stock and/or debtors as per stock Statement
LESS:
(a) Value of obsolete stock
(b) Amount of debtors beyond cover period
(c) Unpaid creditors
(d) Unpaid statutory dues
v. Total of (a+b+c+d)
vi. Value of stock/debtors for computation of drawing power
(iv)-(v)
vii. LESS Margin ( %)
viii. DRAWING POWER (vi-vii) = B
ix. Shortfall (WCTL) = (A-B)*
*WCTL shall be maximum 50% of fund based WC limit sanctioned or outstanding

which is higher.
4
3. Assessment of Working Capital Limit
(₹ in Lakh)
A Projected Turnover
B Turnover as accepted by Bank
C Working Capital requirements = 37.5% of sales (i.e. column B) – in
case the borrower made transactions digitally
OR
31.25% of sales (i.e. column B) in case the borrower made

transactions non- digitally
D Minimum margin required:
7.5% of sales (i.e. column B)- in case of C (i) OR
6.25% of sales (i.e. column B) - in case of C (ii)

E Actual margin available (Net Working Capital)
F C-D
G C-E
H Maximum Permissible Bank Finance is lower of the F & G
4. Assessment of Non fund based limits:
i. Assessment of LC limits:
(₹ in Lakh)
Annual Raw Material purchases
Monthly Raw Material purchases
Monthly Raw Material purchases through LC’s @ % (A)
Average Usance Period in Days (B)
Lead Time and transit period in Days (C)
Total of ‘B’ and ‘C’ (D)
LC limits required (= A X D)
Recommended LC Limits
ii. Assessment of BG limits:

(₹ in Lakh)
Outstanding BGs as on
Add: BG’s required during the next 12 months, as under
1. Earnest Money deposit
2. Security Deposit
3. Advance Payment BG
4. Retention Money Deposit/Maintenance Guarantee
Less: Estimated maturity/cancellation of BG’s during the period.
Requirements of BG’s
Recommended BG limit
Brief comments on requirements of NFB limits:
5
Common Appraisal format for MSME Restructuring of advances above
₹10 lakhs & up to ₹10.00 Cr.
(For MSMEs, Loans to Individuals for Business purpose including units engaged in
Retail /Wholesale Trade)
(₹ in Lakh)
Name of the Unit
Persons(s):
Activity:
Invt in P&M, Equip................./
( as on )
Location:
i) Regd. / Corporate Office
Address:
Mobile No.:
Telephone No.:
PAN:
CIN:
DIN:
establishment:
Coverage under any guarantee
schemes (pl. specify)
Any Govt. sponsored schemes
(if so Specify)
Banking arrangement:
Sole Banking/ Multiple Banking
Limits with Other Bank, if any:
FB:
NFB:
Total:
5
Internal Risk Rating Summary/Score (If applicable)
Credit Risk Rating/Score (CRR) Current Previous (as
based on balance sheet as on (as on 31.03……) on 31.03….)
Borrower Rating
Date of Rating
Position of account:
(₹ in lakhs)
For Sanction of:
For approval of
3. Brief Profile of Unit/Directors/Proprietor/Partners:
4. Credit limits (Existing and proposed):

(₹ in Lakh)
Facility Existing Proposed Change
CC/OD
TL
FITL
WCTL-1
WCTL-2
Total FB
LC/BG
Total Non-FB
Total (FB + Non-FB)
5. a) Performance and Financial Indicators

(₹ in Lakh)
Parameters 31.03….. 31.03….. 31.03….. 31.03…..
Audited Audited Estimated Projected
Net Sales
(Export)
PBT/Net Sales (%)
Profit after tax
PBDIT
Cash Accrual
Paid up capital
TNW
5
PBDIT/Interest
Long term Debt/EBDITA
Current Ratio
NWC
FACR
DSCR
b) Comments on significant variations in Financial Indicators:

Net Sales
Net Profit / Profitability
Tangible Net Worth
TOL/TNW
Current Ratio
DSCR in case of Term Loan
6. Conduct of various facilities

i. Cash Credit Account:
(₹ in Lakh)
Particulars Last financial year Current Financial year upto
previous months
Credit Summations
Debit Summations
Comments:
ii. Status of LC / BG:

(₹ in Lakh)
Last financial Current Financial
Particulars year year upto
previous months
No. Amount No. Amount
No. and amount of LC/BG issued
No. and amount of LC/BG invoked or
devolved if any
Whether CC account was rendered
irregular on account of devolvement
Maximum no. of days taken
Commission earned
Reasons for LC devolvement / BG invocation:
7. a) Assessment of Working Capital:
Please use annexures as applicable:
Annexure-1 Assessment of FITL / WCTL / WC / NFB Limits
5
b) Justification and need for restructuring:
c) Justification for renewal of CC account (if applicable)
d) Review of Term Loan (if applicable)

SN. A/c Limit DP DSCR IRAC
No Status
Outstanding Irregularity, (Previous (for
if any* Yr) remaining
period of
TL)
* Comments on reasons for over dues:

Number of
instalments due
Number of
instalments paid
Number of
instalments in
arrears
Amount of
interest in arrears
Comment on the
company's action
plan for
regularizing the
account
Cross defaults: If
any, please
specify:
Justification for rescheduling of existing Term Loan (if applicable)
Repayment schedule:
Original Revised
e) Assessment of Term Loan: As per Annexure-II
5
8. a) Indicative viability benchmarks & other milestones (for proposals above
₹10 lakhs and up to ₹50.00 lakhs)
Indicative viability Benchmark Compliance
Status
Viable Yes
DSCR during the first 2 years of rehabilitation 1:1 (MIN)
(applicable for TL)
Compliance of terms of previous sanction Yes/No, If No, Please specify.
Closure of Current account with other Banks if any Yes/No, If No, Please specify.
b) Indicative viability benchmarks & other milestones (for proposals above

₹50 lakhs and up to ₹10.00 Crs):
Viable Yes
Current ratio(applicable for WC) 1.1:1 (MIN)
DSCR after 2 years (applicable for 1.25:1 (MIN)
TL)
Long term 4:1 (MAX)
Debt/EBIDTA(applicable for
WC/TL)
FACR(applicable for TL) 1:1 (MIN)
(applicable for WC)
Break Even Point(Applicable for TL) Unit should achieve
exceeding 85%
Promoters contribution For FITL & WCTL-Nil

other than FITL
&
WCTL-15%
Compliance of terms of previous Yes/No, If No, Please
sanction specify.
Closure of Current account with Yes/No, If No, Please
other Banks, if any. specify.
c) Status Regarding Statutory Obligations:

i. Registration under Shops & Establishment Act Yes / No / NA
ii. Registration under MSME (Provisional / Final) Yes / No / NA
iii. Drug License Yes / No / NA
iv. Latest GST Return filed Yes / No / NA
v. Latest Income Tax Returns filed Yes / No / NA
vi. Any other Yes / No / NA
5
d) Confirmation:
i. Compliance of last sanctioned terms (if No, give details) Yes/No
ii. Security Documents are valid/in force Yes/No

iii. Proper charge on securities created in Bank’s favor Yes/No
iv. Last Audited Balance Sheet submitted by the company is Yes/No
verified from the Balance Sheet submitted to ROC
v. Exposure is within Bank’s prudential Norms/RBI Yes/No

guidelines
vi. Whether company/directors are under Yes/No
Bank’s/ RBI / ECGC / CIBIL defaulter’s list/Central
Fraud Registry
vii. Any deviation from usual norms Yes/No
viii. Whether directors are disqualified under Section 164 of Yes/No
Companies Act, 2013
ix. Any arrears in payment of statutory liabilities by the Co. Yes/No
x. Auditor’s comments on Corporate Governance Yes/No

Practices followed in case of Limited Companies
xi. Pending litigation against/by the company (If yes details Yes/No
to be given)
xii. Whether company/directors/firm’s partners/proprietor are Yes/No
related to Bank’s director/s
xiii. Whether Company’s directors are Yes/No
directors in our Bank’s/Other Bank’s Board
xiv. Exchange of information with participating banks has Yes/No
been done in the RBI prescribed format
xv. Whether a confirmation from the company has been Yes/No
obtained regarding the status of different regulatory
compliances.
xvi. Whether Asset Status with other Banks as per CRILC Yes/No
data
xvii. Any others Yes/No
9. Risks / adverse features and mitigating factors:

Audit Reports
Critical risks perceived Mitigating factors
IR Report (Internal Audit)
Dated:
Statutory Audit Report Dated:
Name of Auditor:
Remarks (Including availability of collaterals)
*Stocks & Receivable Audit (if applicable)
Report dated:
10. Pricing / Interest

5
Rate Rate Rate
Cash Credit
Term Loan
FITL
WCTL
11. Repayment:
FITL
WCTL
TL
12. Security:
i. Primary:
ii. Collateral: (₹ in lakhs)

Particulars SARFAESI Value Dt of EM Created
valuation Date
Collateral coverage Existing ( % ) Proposed ( % )
iii. Guarantee (Personal/Corporate Guarantee) (₹ in lakhs)

Name of the guarantor(s) Net means / TNW As on
13. Whether the name of the firm / Company/ Director appears in:
SN Particulars Date Remarks
i. CIC defaulters list (₹1 crore & above –non suit filed)
ii. CIC defaulters list (₹25.00 lakhs & above –non suit filed)
iii. ECGC caution list
iv. Suit Filed list
v. Litigations against the company or its directors
vi. Central Fraud Registry

 CGTMSE will be informed of the revised terms and conditions of restructuring.
 Extant instructions pertaining to MSME restructuring have been complied with.
 The Bank’s right to exercise recompense (Right to recompense) would be
5
included in the sanction letter to the borrower.
15. Recommended for sanction / approval / confirmation:

For Sanction of
For approval of

Signature
Name
PF No.
Designation
Date
5
Annexure-1
(₹ in lakhs)
FITL LIMIT
(₹ in lakhs)
i. Outstanding in CC account
ii. LESS: Unpaid Interest if any
iii. PRINCIPAL DUES (i-ii )=A
iv. Value of stock and/or debtors as per stock Statement
LESS:
v. Total of (a+b+c+d)
vi. Value of stock/debtors for computation of drawing power
(iv)-(v)
vii. LESS Margin ( %)
viii. DRAWING POWER (vi-vii) = B
ix. Shortfall (WCTL) = (A-B)*

which is higher.
a) Assessment of Working Capital Limit (Projected Turnover Method - Nayak

Committee Method Up to ₹5.00 Cr)
(If the assessment of the WC limit is based on any other parameters, like Cash Budget
Method, please specify them along with an explanation)
A Projected Turnover
B Turnover as accepted by Bank
C Working Capital requirements = 37.5% of sales (i.e. column B) – in
case the borrower made transactions digitally
OR
31.25% of sales (i.e. column B) in case the borrower made

transactions non- digitally
D Minimum margin required:
7.5% of sales (i.e. column B)- in case of C (i) OR
6.25% of sales (i.e. column B) - in case of C (ii)

E Actual margin available (Net Working Capital)
5
F C-D
G C-E
H Maximum Permissible Bank Finance is lower of the F & G
b) Assessment of Working Capital for exposure above ₹5.00 Cr. MPBF method
(₹ in Cr)
S.N. Particulars Audited Audited Estimated Projected
31.03. 31.03.
1 Total Current Assets (TCA)
2 Other Current Liabilities (OCL)
3 Working Capital Gap (1-2)
4 Minimum Stipulated Margin i.e.
25% of TCA
5 Available NWC
6 (3-4)
7 (3-5)
8 Bank Finance / MPBF (Lower of 6
or 7)
(₹ in Cr)

(₹ in Cr)
6. Security Deposit
6
Annexure-II
Term Loan Appraisal
Name of the Unit/Borrower:
a) Proposal:
b) Project / Purpose:
c) Appraised by:
Assessment of Term Loan:
1. Purpose:
2. Project Details: (₹ in Crs)
Cost of Project, Means of finance and Key Project Parameters:
Cost Means of Finance

Land
Building
P&M A. Equity: Promoter Others Total
(a) (b) (c=a+b)
Other assets i) Equity Shares
Prel. and Pre- op. ii) Pref. Shares
Expenses
IDC @ iii) Internal
Accruals*
Contingencies Total equity (A)
contribution (i+ii+iii)
WC Margin B. Debt
(i) Borrowings from
friends & relatives
(ii) Bank finance
(ii) Others, if any
Total Debt (i+ii+iii) (B)
Total Total (A+B)
@ IDC – interest during construction, as a component of preliminary & pre- operative
expenses.
3. Comments on Cost of Project & Means of Finance (including on ability to

bring in Required Capital):
6
4. Project implementation & disbursement schedule:
i. Location:
ii. Land:
iii. Production factors / Technical aspects
iv. Marketing & selling arrangements
v. Any other factors:
vi. Utilities:
vii. Approvals and clearances:
viii. Implementation schedule:
ix. Status of implementation and disbursement schedule:
5. Commercial viability:
Description 31.03… 31.03… 31.03… 31.03… 31.03… 31.03…
Capacity utilisation %
Sales
Net Profit
Depreciation
Cash Accruals (Net of
margin)
Interest
TOTAL
Term Loan
repayments
Interest
TOTAL
Gross DSCR
Average Gross DSCR
Net DSCR
Comments on DSCR (in brief):
Mode of Disbursement
Compliance of the project with
environmental / social / statutory
requirements
Overall viability and acceptability of the
proposal
6
Common Appraisal Memorandum for MSME Restructuring above ₹10 Crores
to
₹25 Crores.
(For MSMEs, Loans to Individuals for Business purpose including units engaged in
(₹ in Cr)
Name of the Unit
Persons(s):
Activity:
Invt in P&M, Equip................./
( as on )
Location:
i) Regd. / Corporate Office
Address:
Mobile No.:
Telephone No.:
PAN:
CIN:
establishment:
CRILC Status as on………….
External Rating
Date of rating
Valid upto
Internal Risk Rating Summary/Score (If applicable)

Credit Risk Rating/Score (CRR) Current Previous (as
based on balance sheet as on (as on 31.03……) on 31.03….)
Borrower Rating
Date of Rating
6
Names & Addresses of the Promoters / Directors
S. Name Designation Mobile No, E-Mail Identifiers Full
N. ID and other DIN PAN Passport Address
Social Media IDs
2. Position of account:
(₹ in Cr)
For Sanction of:
For approval of
4. Brief Profile of Unit/Directors/Proprietor/Partners:
Brief write up on the industry/Sector and the Company’s standing: (Comments

on domestic/international standing, market share, business strategies, competitive
advantage etc. & to conclude with the outlook for the unit)
5. Banking arrangement and sharing pattern:

(₹ in Cr)
Financial Arrangement: Sole Banking/Multiple Banking
Details FB NFB Total %
TL WC LC BG Share
Our Bank (Total)
Other Banks (Total)
Total
6. Credit limits (Existing and proposed):

(₹ in Lakh)
Facility Existing Proposed Change
CC/OD
TL
FITL
WCTL-1
WCTL-2
Total FB
LC/BG
6
Total Non-FB
Total (FB + Non-FB)
7. a) Performance and Financial Indicators

(₹ in Cr)
Parameters 31.03….. 31.03….. 31.03….. 31.03…..
Audited Audited Estimated Projected
Net Sales
(Export)
PBT/Net Sales (%)
Profit after tax
PBDIT
Cash Accrual
Paid up capital
TNW
PBDIT/Interest
Long term Debt/EBDITA
Current Ratio
NWC
FACR
DSCR
b) Interim Financials
Particulars Q1/H1 current Year Q1/H1 last year
Net sales
Export
c) Comments on significant variations in Financial Indicators:

Net Sales
Net Profit / Profitability
Tangible Net Worth
TOL/TNW
Current Ratio
DSCR in case of Term Loan
d) Movement of TNW if applicable

31.03…. 31.03…. 31.03….
Opening TNW (excluding SAM*)
Share Application Money*
Add PAT
Add. (a) Increase in equity
(b) Increase in share premium
Add/Subtract change in intangible
assets
Adjust prior year expenses
Deduct Dividend payment
Add/Subtract: DTL/DTA
Closing TNW
6
Investments in Associates /
Subsidiaries (A&S)
Long Term Loans to A&S
Adjusted TNW
*Share Application Money (SAM) be converted to equity by next Balance Sheet date.
Comments:
e) Details of Group / Associate Entities / Companies (if applicable):

Name of Names of Activity Banking Credit Conduct IRAC
the unit Promoters/ with Bank / Limits of Status
Directors Branch account
8. Conduct of various facilities

i. Cash Credit Account:
(₹ in Cr)
Particulars Last financial year Current Financial year upto
previous months
Credit Summations
Debit Summations
Comments:
ii. Status of LC / BG:

(₹ in Cr)
Last financial Current Financial
Particulars year year upto
previous months
No. Amount No. Amount
No. and amount of LC/BG issued
No. and amount of LC/BG invoked or
devolved if any
Whether CC account was rendered
irregular on account of devolvement
Maximum no. of days taken
Commission earned
Reasons for LC devolvement / BG invocation:
Whether RBI Regulatory package i.e. deferment of Interest and Y/N

Instalments upto 31.08.2020 extended
Liberalized WC assessment / Reduction in Margin for WC Y/N
Limits / NFB facilities whether extended
CECL / CCECL / GECL limits sanctioned. Y/N
Comments:
6
9. a) Assessment of Working Capital:
Please use annexures as applicable:
Annexure-1 Assessment of FITL / WCTL / WC / NFB Limits
b) Justification and need for restructuring:
c) Justification for renewal of CC account (if applicable)
d) Review of Term Loan (if applicable)

SN A/c Limit DP Outstanding Irregularity, DSCR IRAC
. No if any* Status
(Previo (for
us Yr) remaining
period of
TL)
*Comments on reasons for over dues:

Number of
instalments due
Number of
instalments paid
Number of
instalments in
arrears
Amount of
interest in
arrears
Comment on the
company's action
plan for
regularizing the
account
Cross defaults: If
any, please
specify:
Justification for rescheduling of existing Term Loan (if applicable)
6
Repayment schedule:
Original Revised
e) Assessment of Term Loan (in case of additional funding): As per Annexure-II
10. Indicative viability benchmarks & other milestones:

Viable Yes
Current ratio(applicable for WC) 1.1:1 (MIN)
DSCR after 2 years (applicable for 1.25:1 (MIN)
TL)
(applicable for WC/TL)
FACR(applicable for TL) 1:1 (MIN)
(applicable for WC)
Break Even Point(Applicable for TL) Unit should achieve
capacity utilization,
not exceeding 85%
Promoters contribution For FITL & WCTL-Nil

other than FITL &
WCTL-15%
Compliance of terms of previous Yes/No, If No, Please
sanction specify.
Closure of Current account with Yes/No, If No, Please
other Banks, if any. specify.
c) Status Regarding Statutory Obligations:

Registration under Shops & Establishment Act Yes / No / NA
ii. Registration under MSME (Provisional / Final) Yes / No / NA
iii. Drug License Yes / No / NA
iv. Latest GST Return filed Yes / No / NA
v. Latest Income Tax Returns filed Yes / No / NA
vi. Any other Yes / No / NA
d) Confirmation:
i. Compliance of last sanctioned terms (if No, give details) Yes/No
ii. Security Documents are valid/in force Yes/No
6
iii. Proper charge on securities created in Bank’s favor Yes/No
iv. Last Audited Balance Sheet submitted by the company is Yes/No
verified from the Balance Sheet submitted to ROC
v. Exposure is within Bank’s prudential Norms/RBI Yes/No

guidelines
vi. Whether company/directors are under Yes/No
Bank’s/ RBI / ECGC / CIBIL defaulter’s list/Central
Fraud Registry
vii. Any deviation from usual norms Yes/No
viii. Whether directors are disqualified under Section 164 of Yes/No
Companies Act, 2013
ix. Any arrears in payment of statutory liabilities by the Co. Yes/No
x. Auditor’s comments on Corporate Governance Yes/No

Practices followed in case of Limited Companies
xi. Pending litigation against/by the company (If yes details Yes/No
to be given)
xii. Whether company/directors/firm’s partners/proprietor are Yes/No
related to Bank’s director/s
xiii. Whether Company’s directors are Yes/No
directors in our Bank’s/Other Bank’s Board
xiv. Exchange of information with participating banks has Yes/No
been done in the RBI prescribed format
xv. Whether a confirmation from the company has been Yes/No
obtained regarding the status of different regulatory
compliances.
xvi. Whether Asset Status with other Banks as per CRILC Yes/No
data
xvii. Any others Yes/No
11. Risks / adverse features and mitigating factors:

Audit Reports
Critical risks perceived Mitigating factors
IR Report (Internal Audit)
Dated:
Statutory Audit Report Dated:
Name of Auditor:
Remarks (Including availability of collaterals)
*Stocks & Receivable Audit (if applicable)
Report dated:
12. Pricing / Interest

Rate Rate Rate
Cash Credit
Term Loan
FITL
6
WCTL
13. Value of account (During Financial Year):

i) Advances: Previous Year Current Year
(Period) (Period)
- Interest Income
- Fee based Income
ii) Value of relationship
iii) Others (Cross selling etc).
iv) Retail Business (Auto Loan, Housing loan,
Personal Loan, etc.)
14. Repayment:
FITL
WCTL
TL
15. Security:
i. Primary:
ii. Collateral: (₹ in Cr)

Particulars SARFAESI Value Dt of EM Created
valuation Date
Collateral coverage Existing ( % ) Proposed ( % )
iii. Guarantee (Personal/Corporate Guarantee) (₹ in lakhs)

Name of the guarantor(s) Net means / TNW As on
16. Whether the name of the firm / Company/ Director appears in:
SN Particulars Date Remarks
vii. CIC defaulters list (₹1 crore & above –non suit filed)
viii. CIC defaulters list (₹25.00 lakhs & above –non suit filed)
ix. ECGC caution list
x. Suit Filed list
xi. Litigations against the company or its directors
xii. Central Fraud Registry
17. Critical risk factors and their mitigation (if applicable)
7
 Extant instructions pertaining to MSME restructuring have been complied with.
 The Bank’s right to exercise recompense (Right to recompense) would be
included in the sanction letter to the borrower.
19. Recommended for sanction / approval / confirmation:

For Sanction of
For approval of

Signature
Name
PF No.
Designation
Date
7
Annexure-1
(₹ in lakhs)
FITL LIMIT
(₹ in lakhs)
x. Outstanding in CC account
xi. LESS: Unpaid Interest if any
xii. PRINCIPAL DUES (i-ii )=A
xiii. Value of stock and/or debtors as per stock Statement
LESS:
iv. Total of (a+b+c+d)
xv. Value of stock/debtors for computation of drawing power
(iv)-(v)
xvi. LESS Margin ( %)
xvii. DRAWING POWER (vi-vii) = B
iii. Shortfall (WCTL) = (A-B)*

which is higher.
3. a) Assessment of Working Capital for exposure above ₹5.00 Cr. (MPBF

method)
(If the assessment of the WC limit is based on any other parameters, like Cash Budget
Method, please specify them along with an explanation)
(₹ in Cr)
S.N. Particulars Audited Audited Estimated Projected
31.03. 31.03.
1 Total Current Assets (TCA)
2 Other Current Liabilities (OCL)
3 Working Capital Gap (1-2)
4 Minimum Stipulated Margin i.e.
25% of TCA
5 Available NWC
6 (3-4)
7 (3-5)
8 Bank Finance / MPBF (Lower of 6
or 7)
7
b) Assessment of EPC / FBD limits:
S.N. As on 31st March Actuals Estimated Projected
A EPC
A1 Annual Export Sales
A2 Exports Per month
A3 Average RM holding (in months)
A4 Average processing period (in
months)
A5 Total requirement [A2 x(A3+A4)]
Less: Margin
A6 EPC Limit Recommended
B PSC
B1 Average export receivables
(in months)
B2 PSC required (A2 *B1)
B3 FBD Limit Recommended
C Total export finance required (A6+B3)
Brief comments:
(₹ in Cr)

(₹ in Cr)
10. Security Deposit
7
Annexure-II
Term Loan Appraisal
a) Proposal:
b) Project / Purpose:
c) Appraised by:
Assessment of Term Loan:
1. Purpose:
2. Project Details: (₹ in Crs)
Cost of Project, Means of finance and Key Project Parameters:
Cost Means of Finance

Land
Building
P&M A. Equity: Promoter Others Total
(a) (b) (c=a+b)
Other assets i) Equity Shares
Prel. and Pre- op. ii) Pref. Shares
Expenses
IDC @ iii) Internal
Accruals*
Contingencies Total equity (A)
contribution (i+ii+iii)
WC Margin B. Debt
(i) Borrowings from
friends & relatives
(ii) Bank finance
(ii) Others, if any
Total Debt (i+ii+iii) (B)
Total Total (A+B)
@ IDC – interest during construction, as a component of preliminary & pre- operative
expenses.
3. Comments on Cost of Project & Means of Finance (including on ability to

bring in Required Capital):
7
4. Project implementation & disbursement schedule:
x. Location:
xi. Land:
xii. Production factors / Technical aspects
xiii. Marketing & selling arrangements
xiv. Any other factors:
xv. Utilities:
xvi. Approvals and clearances:
xvii. Implementation schedule:
xviii. Status of implementation and disbursement schedule:
5. Commercial viability:
Description 31.03… 31.03… 31.03… 31.03… 31.03… 31.03…
Capacity utilisation %
Sales
Net Profit
Depreciation
Cash Accruals (Net of
margin)
Interest
TOTAL
Term Loan
repayments
Interest
TOTAL
Gross DSCR
Average Gross DSCR
Net DSCR
Comments on DSCR (in brief):
Mode of Disbursement
Compliance of the project with
environmental / social / statutory
requirements
Overall viability and acceptability of the
proposal
7
ARRANGEMENT LETTER
(For MSME Restructuring of Advances up to ₹10 lakhs)
No. Date:
To,
……………………………….
Madam / Dear Sir,
MSME Advances: Restructuring of credit facilities
With reference to your application dated requesting us for restructuring of

existing credit facilities and subsequent correspondence in this regard, we have pleasure in
advising you the sanction of the following credit facilities.
Credit Limits [Existing & Proposed] : [₹ in lakhs]

LIMITS EXISTING PROPOSED
Cash Credit
Total FBWC
Term Loan
Funded Interest Term Loan (FITL)
Working Capital Term Loan (WCTL)
Total Term Exposure
LC / BG
Total NFB
Total Indebtedness
Conditions:
We are forwarding this letter in duplicate along with Annexure-I and shall be glad if you
return to us the originals duly signed by you in token of having accepted the Terms and
Conditions, below the words "We Accept" appearing at the end of the Annexure-I and retain
the duplicate thereof for your record. You may return the scanned copy of acceptance letter
through WhatsApp No………………… / to email id… /by Post.
Thereafter, you may call on us with the guarantors, preferably with prior appointment, to
execute the documents in this regard within a period of 90 days from the date of this letter.
Assuring you of our best services at all times.
Yours faithfully,
Encl.: Terms and Conditions – Annexure-I
7
Annexure -I
TERMS AND CONDITIONS

(₹ in Lakh)
1. Facility Limit
Term Loan
Cash Credit
Funded Interest Term Loan (F I T L)
Working Capital Term Loan WCTL
NFB facilities
2. Security
Primary
Facility Details of Market Value Date of Basis of Bank
Security valuation Valuation Assessed
Value
CC Stock
Statement
FITL
WCTL
TL WDV as per
ABS dated
Others
3. Pricing/ Interest
Facility MCL Existing Rate Card Rate Proposed rate
R/ Sprea Effective Spread Effectiv Spread Concessio n Effective
RLL d Rate e Rate Rate
R
Cash
Credit
Term
Loan
FITL
WCTL
4. a) Margin (%)
Stocks
Receivables
LC / BG
FITL
WCTL
Term Loan
Cover Period (in Days)
5. Repayment
CC (Hyp)
Term Loan
Reschedule of TL Existing:
7
Instalments
Proposed:
FITL
WCTL
6 (i) Validity of Sanction (in
months)
(ii) Review/ Renewal (in
months)
7. Inspection
8. Stock Statement
9. Insurance
10. CGTMSE guarantee fee &
Annual service fee,
if
applicable
Demand Advise No. (DAN)
11. Processing fee
12. Upfront Fee
13. Mortgage Charges
14. Commitment Charges
15. Penal Interest
16. Documents
17. Other Stipulation, if any:
18. Covenants of Sanction:
We accept.
Borrower/s Date:
Place:
7
ARRANGEMENT LETTER
(For restructuring of advances above ₹10.00 lakhs)
No. Date:
To,
………………………..
Madam / Dear Sir,
MSME ADVANCES: RESTRUCTURING OF CREDIT FACILITIES
With reference to your application dated requesting us for restructuring of

existing credit facilities and subsequent correspondence in this regard, we have pleasure in
advising you the sanction of the following credit facilities.
Credit Limits [Existing & Proposed] : [Rs. in Lakh]
LIMITS EXISTING PROPOSED
Cash Credit
Total FBWC
Term Loan
Funded Interest Term Loan (FITL)
Working Capital Term Loan (WCTL)
Total Term Exposure
LC / BG
Total NFB
Total Indebtedness
Conditions:
We are forwarding this letter in duplicate along with Annexure-I and shall be glad if you
return to us the originals duly signed by you and the guarantors in token of having accepted
the Terms and Conditions, below the words "We Accept" appearing at the end of the
Annexure-I and retain the duplicate thereof for your record. You may return the scanned copy
of acceptance letter through WhatsApp No…............................................................../ to email
id ………………………..
Thereafter, you may call on us with the guarantors, preferably with prior appointment, to
execute the documents in this regard within 90 days from the date of this letter.
Assuring you of our best services at all times.
Yours faithfully,
(BRANCH HEAD)
Encl.: Terms and Conditions – Annexure-I
7
Annexure -I
TERMS AND CONDITIONS
(₹ in Lakh)
1 Facility Limit
Term Loan
Cash Credit
FITL
WCTL
NFB facilities
2 Security
i) Primary
Facility Detail Realizable/ Date of Basis of Bank
s of Market Value valuation Valuation Assessed
Securi Value
ty
CC
FITL
WCTL
TL
Others
ii) Collateral
S. Facility Details Ow SAR Type of Fair Value Date of Date
N. of ne d F Charge mar Conside Valuation of
Securit by AESI ket r ed Title
y Com Valu Sear
p e ch
liant Rep
ort
Total
Less: Existing Charges/ Extension (if
any)
Available Amount of security for the
Loan
iii) Guarantees
Sl. No. Name Net Means As on Compiled on
Date
3 Pricing/ Interest
Facility MCLR Existing Rate Card Rate Proposed rate
/ Spread Spread Spread Effective
Effective Effective Concessio
RLLR
Rate Rate n Rate
Cash
Credit
8
Term
Loan
FITL
WCTL
4 a) Margin (%)
Stocks
Receivables
LC / BG
FITL
WCTL
Term Loan
Cover Period (in Days)
5 Repayment
CC (Hyp)
Term Loan
Reschedule of TL Existing:
Instalments
Proposed:
FITL
WCTL
6 (i) Validity of Sanction
(in months)
(ii) Review/ Renewal (in
months)
7 Inspection
8 Stock Statement
9 Insurance
10 CGTMSE guarantee
fee & Annual service
fee, if applicable
Demand Advise No.
(DAN)
11 Processing fee
12 Upfront Fee
13 Mortgage Charges
14 Commitment Charges
15 Penal Interest
16 Documents
17 Other Stipulation, if any:
18 Covenants of Sanction:
We accept
Borrower/s Guarantor/s
Date
Place

Resolution Framework Msme

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Resolution Framework Msme

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MSME & Mid Corporate Credit Division, Head Office, Wing ‘B’, 4 th Floor, Sector 10,

Dwarka, New Delhi -110075, e-mail: sme@pnb.co.in

MSME & MID CORPORATE CREDIT DIVISION CIRCULAR NO. - 42 /2021

In view of the uncertainties created by the resurgence of the COVID-19 pandemic in

Board has approved the guidelines prescribed by RBI of Resolution of COVID-19

(Ashok Kumar Gupta)

ii. Invocation Process;

iii. Implementation Process;

iv. Sanctioning Authority and Loan Discretionary

RESOLUTION FRAMEWORK 2.0 – RESOLUTION OF COVID-19

In view of the uncertainties created by the resurgence of the Covid-19 pandemic in

1 ELIGIBLE LOANS/ BORROWERS

i. The borrower should be classified as a micro, small or medium enterprise

ii. The borrowing entity is GST-registered on the date of implementation of

iii. The aggregate exposure, including non-fund based facilities, of all

iv. The borrower’s account was a ‘standard asset’ as on March

v. The borrower’s account was not restructured in terms of the circulars

vi. The restructuring of the borrower account is invoked by

vii. The restructuring of the borrower account is implemented

viii. If the borrower is not registered in the Udyam Registration

ix. Upon implementation of the restructuring plan, the lending institutions

x. All other instructions specified in the circular

 In respect of restructuring plans implemented as per Para 1 above, asset

 In respect of accounts of borrowers which were restructured in terms of

 The above measures shall be contingent for consideration of restructuring

 The date on which Bank conveys to the Borrower, based on the

 The resolution process under this window shall be treated as invoked

 Resolution under this framework can be invoked not later than

5 TIMELINE FOR IMPLEMENTATION OF RESOLUTION PLAN (RP)

The restructuring of the borrower account is to be implemented within 90 days

6 SCOPE OF RESOLUTION PLAN

 Moratorium may be extended to borrowers whose income has been

7 IMPLEMENTATION CONDITIONS FOR RESOLUTION PLAN

The resolution plan shall be deemed to be implemented if all of the

 All related documentation, including execution of necessary agreements

 Post-implementation of the package, the accounts of the borrower should

 Any resolution plan implemented in breach of the above stipulated

The Resolution Plan shall be deemed to be implemented only if the account

SN Resolution Aggregate Sanctioning Authority

Aggregate Within vested Loaning powers

4 Additional Aggregate Additional funding under One

S Nature of Incumb Incum ZOCAC - ZOCA HOCA

V Waivement of No No Powers Full Powers

Sanctioning authority as per delegated powers as prescribed above are

i. If FITL is considered under Resolution Plan, it shall not be treated as

Upto max 120 days – PLP/MCC

11 POST IMPLEMENTATION PERFORMANCE

 In CBS for identifying the restructured accounts, details are to be

12 VIABILITY CRITERIA / BENCHMARKS

 The viability of the account, inter alia, shall be considered

A. Indicative viability benchmarks & other milestones

Indicative viability Benchmark

DSCR during the first 2 years of 1:1 (MIN)

Indicative viability Benchmark

DSCR during the first 2 years of 1:1 (MIN)

For additional facilities

C. Indicative Viability benchmarks & other milestones

Indicative viability Benchmark

For additional facilities

4. Further, efforts to be made to obtain the audited financials at the earliest.

 All other instructions applicable to restructuring of loans to MSME borrowers

FREQUENTLY ASKED QUESTIONS (FAQs) for STAFF –

1. How to capture restructuring details in CBS?