A Reserve Bank of India (RBI) panel constituted to evolve a debt restructuring system for small-and medium-sized enterprises (SMEs), has proposed a mechanism to be termed medium sector restructuring (MSR) system that would undertake restructuring of SMEs on the lines of the existing corporate debt restructuring (CDR) system.
Under this mechanism, restructuring of those stressed or sub-standard assets would be undertaken where more than one lender has an outstanding exposure between Rs5 crore and Rs20 crore.
The MSR would have a two-tier structure comprising of the MSR standing forum at the national level and MSR empowered group at the state level. To begin with, the MSR system would cover only the SME sector. On a review of the system after one year, it could be extended to include partnership/proprietorship firms also.
