Case Study Of Micro, Small And Medium Enterprises

2157 Words 9 Pages
Preamble: | The Micro, Small and Medium Enterprises (MSME) Sector, particularly the tiny segment of the small enterprises, faces huge challenges as under: * Competition from both domestic & …show more content…
Accordingly the Bank’s MSME policy and Strategies encompassing the various schemes and norms within the overall ambit of the Govt / RBI directives is given hereunder.This policy would cover all credit related exposures (both fund based and non-fund based) and the guidelines relating to Credit Risk Management, credit delivery, credit monitoring and recovery shall be uniformly applicable to the MSME policy. With changes in any of these guidelines, at appropriate levels, the MSME policy would also automatically stands amended. | MSME Definition | In terms of definition, the following advances would presently be covered under MSME:Micro (manufacturing) Enterprises
Enterprises engaged in the manufacture / production, processing or preservation of goods and whose investment in plant and machinery (original cost including land & building and such items as in 2.1.1(a) does not exceed Rs.25 lakh, irrespective of the location of the unit.
Micro (service) Enterprises
Enterprises engaged in providing / rendering of services and whose investment in equipment [original cost excluding land and building and furniture, fittings and such items as in 2.1.2 (a)] does not exceed Rs.10
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The Bank’s extant instructions and RBI guidelines would be applicablemutatis mutandis.Sanctioning

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