SIDBI’s DIY Portal for MSME Customers to submit restructuring proposals

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Small Industries Development Bank of India the principal financial institution focusing on micro, small, and medium enterprises in the country on Tuesday announced signing a memorandum of understanding with the Central Bank of India to facilitate the latter’s micro, small, and medium enterprises customers to use web-based asset restructuring module. The module, which was launched recently, is a DIY web portal to help micro, small, and medium enterprises prepare their restructuring proposals on their own under the restructuring scheme by the RBI. Developed in collaboration with the asset reconstruction firm India Small and Medium Enterprises Asset Reconstruction Company, the portal lets micro, small, and medium enterprises key in only the most essential data of their past financials, future projections, and restructuring requirement for the proposal.

Micro, small, and medium enterprises would also be able to generate reports for submission to banks. As of now, micro, small, and medium enterprises can share their proposals with up to 3 banks through the portal. It will help micro, small, and medium enterprise customers to submit a restructuring plan for their units online to the Central Bank of India in a simple and easy manner. Small Industries Development Bank of India in partnership with local micro, small, and medium enterprises associations has placed credit counselors at different locations to provide hand-holding support to micro, small, and medium enterprises units seeking restructuring. All these services are available free of cost. Small Industries Development Bank of India said in a statement. The bank had last month entered into a similar pact with the Indian bank to help the latter’s micro, small, and medium enterprise customers.

According to Arup Kumar, General Manager, SIDBI, the micro, small, and medium enterprises used to consult some chartered accountants or budget consultants to structure their proposals so far. They needed some handholding support and had to shell out money to get that done. With this portal, they can do it themselves similar to filing ITR on your own instead of asking a charted accountant to do this for you.

While the documents required for the proposal may vary as per the internal guidelines of the banks, micro, small, and medium enterprises would have to upload soft copies of the signed application form and other documents prescribed by its bank on the portal before submission to complete the restructuring proposal in addition to financial projections. Among the documents mandated included restructuring application form or request letter and signed by proprietor, partners, authorized director, etc. Moreover, the last 2-year balance sheets of the units along with Income Tax/GST returns, etc., sales during the current fiscal year up to the date of submission of application and provisional balance sheet, and more would also be required. The Reserve Bank of India had extended debt restructuring for micro, small, and medium enterprises in August until March 31, 2021, for accounts classified as standard with the lender as of March 1, 2020.

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