SIDBI in an MoU with Central Bank of India to facilitate latter’s MSME customers

Small Industries Development Bank of India (SIDBI) — the principal financial institution focusing on micro, small, and medium enterprises (MSMEs) has signed a memorandum of understanding (MoU) with the Central Bank of India to facilitate latter’s MSME customers to use web-based asset restructuring module.

The module, which was launched recently is a Do-It-Yourself (DIY) web portal to help MSMEs prepare their restructuring proposals on their own under the restructuring scheme by the Reserve Bank of India (RBI).

Developed in collaboration with the asset reconstruction firm India SME Asset Reconstruction Company, the portal lets MSMEs key in only the most essential data of their past financials, future projections, and restructuring requirement for the proposal.

MSMEs would also be able to generate reports for submission to banks. As of now, MSMEs can share their proposals with up to three banks through the portal.

While the documents required for the proposal may vary as per the internal guidelines of the banks, MSMEs would have to upload soft copies of the signed application form and other documents prescribed by its bank on the portal before submission to complete the restructuring proposal in addition to financial projections. Among the documents mandated included restructuring application form or request letter and signed by proprietor, partners, authorised director, etc. Moreover, the last two-year balance sheets of the units along with Income Tax/GST returns, etc., sales during the current FY up to the date of submission of application and provisional balance sheet and more would also be required.

The bank had last month entered into a similar pact with the Indian Bank to help the latter’s MSME customers.