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:
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