RBI guidelines seeking to qualify any restructuring of business loan as a non-performing account from next month could spell disaster for the micro, small and medium enterprises (MSMEs).The threat perception is more given that investment limit in units is proposed to be raised, which will bring a larger number of them under the MSME ambit, said a top official of State Bank of Travancore (SBT). Effective April 1, the RBI’s regulatory forbearance, under which banks are allowed to qualify restructured assets as standard, will come to an end.

Source - http://www.thehindubusinessline.com