Credit flow to Micro, Small and Medium Enterprises Sector

Reserve Bank of India vide its notification dated 02 July 2020 has notified a new composite criterion of investment and turnover for both manufacturing and service sector. The new criteria will come into effect from 01 July 2020. The details are as under:

New composite criterion of investment and turnover for both Manufacturing and Service sector

SECTOR

Earlier position of law

New Criteria

Micro

Sector: Manufacturing

Investment in Plant &Machinery not exceeding 25 Lakh

Sector: Services

Investment in equipment not exceeding 10 Lakh

Micro-

Investment in Plant &Machinery not exceeding 1 crore,

(and)

Turnover not exceeding 5 crore

Small

Sector: Manufacturing

Investment in Plant &Machinery than 25 Lakh but does not exceed 5 crore

Sector: Services

Investment in equipment more than 10 Lakh but does not exceed 2 crore.

Small-

Investment in Plant &Machinery not exceeding 10 crore,

(and)

Turnover not exceeding 50 crore

Medium

Sector: Manufacturing

Investment in P&M more than 5 crore but does not exceed 10 crore

Sector: Services

Investment in equipment more than 2 crore but does not exceed 5 crore

Medium-

Investment in Plant &Machinery not exceeding 50 crore,

(and)

Turnover not exceeding 250 crore

The RBI Notification dated 02 July 2020 can be accessed here

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