Loan Recast
Working with RBI on MSME loan restructuring framework, says govt official
This story was originally published at 21:58 IST on 17 November 2025
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By Shakshi Jain
MUMBAI – The government has found a resolution towards loan restructuring for debt-ridden micro, small, and medium enterprises and is working with the Reserve Bank of India for the same, an official from the Ministry of Micro, Small, and Medium Enterprises told Informist Monday.
"The problem in FRR (Framework for Revival and Rehabilitation) is that most of the effectives come in through renewal, very few is coming from restructuring...renewal is ultimately just recycling the loan...the moment there is a restructuring, it becomes NPA (non-performing asset). So we've kind of found a resolution around that," the official said.
The new framework would be known as FRR 2.0. The official did not disclose a timeline for the announcement of the new framework and said the ministry has to get some clearances before that. End
Edited by Akul Nishant Akhoury
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