Various Debt Restructuring Schemes of Govt/ RBI for MSME Sector

Various Debt Restructuring Schemes of Govt/ RBI for MSME Sector

May 28, 2021 Admin
msme sector memse schemes rbi schemes debt restructuring debt restructuring scheme governement schemes schemes for msme

MSME sector is a term used for Micro, Small and Medium Enterprises. These are essential aspects of an economy as they ensure economic growth and a fair progression of every country. Moreover, it offers employment  to more than 90% of the people, so it is a significant part of the nation's economy. Besides this, they account for a significant share in the production and export sector. This is why various schemes have been implemented for this sector, such as debt restructuring.


The MSME sector is the pillar of our economy and renders valuable support to the people's livelihood. Thus it is crucial to protect it from large scale industries as it does not have enough resources or advanced technological equipment. The government / RBI have exclusively launched schemes like debt restructuring to protect the MSME's and provide counselling & assistance during the financial crisis.

Let us delve into some of these schemes and their benefits to those who wish to make a bright future in the industry.


Schemes Launched By The Govt/Rbi For The Msme Sector

  • Udyog Aadhar Memorandum - Aadhar card is a unique identification card allotted to each individual by the government. Under this scheme, the MSME's are issued a unique Udyog Aadhar number through which they can get all the vital information. Moreover, they can also apply online for various schemes/services such as debt restructuring of the government through this unique number. For this, the MSME's have to fill a one-page registration form that includes all the important details. This service is launched free of cost and through the online mode by the government so that MSME's can benefit from it.
  • Zero defect Zero effect ( ZED ) - MSME's act as the flag bearers of the economy as they contribute to the export trade. In order to meet the quality aspect of the overseas customers, the government of India has launched the ZED scheme. This main emphasis of the scheme is to provide financial support to the manufacturing sector and guide them towards the path of growth and prosperity. Additionally, this scheme supports the entrepreneurship spirit to put the MSME'S on a global map, just like the debt restructuring scheme. Several rebates and concessions are offered to the goods which are exported abroad.
  • Grievance Redressal Scheme - The Ministry of MSME has implemented a grievance monitoring system for the business owners to address their problems. Through these internet-based portals, the users can register their complaint and track the status of their grievance until it is resolved. If you are not satisfied with the complaint's resolution, you can re-register the complaint or book an appointment with the concerned officer.
Various Debt Restructuring Schemes of Govt/ RBI for MSME Sector
  • QMS/QMT Scheme - QMS/QMT refers to quality management standards and quality management tools for the MSME. This scheme is introduced under the national manufacturing competitiveness program ( NMCP ) to make businesses aware of the latest equipment/technologies in the market. These are inspired to actively participate in the activities under this scheme in order to become more competitive and meet global standards.
  • Debt Restructuring scheme - In order to provide relief to the borrowers in the MSME Sector, the govt/RBI has launched the debt restructuring scheme. As the pandemic disrupted the daily working of the MSME sector, the government decided to provide assistance through various schemes such as MUDRA. Under this policy, the borrowers can now repay the loans as per their capability. Thus it has proved to be a great sigh of relief for many small businesses, including startups. Borrowers having a credit score of over 750 are eligible for availing of the benefits of this scheme.

Wrapping up

When it comes to the MSME sector, the govt/RBI are very much aware of how important they are for the economy's survival. Thus in order to boost their morale, the schemes such as debt restructuring have been launched to help businesses in crises. The Make in India vision and Self sufficient mission provides adequate  support to the entrepreneurs and gives wings to their dreams. Are you a small business owner who is facing a financial crunch? Then consult the experts from Resurgent India or visit their website.

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