What changed
Government of India issued Gazette Notification S.O. 420(E) on March 28, 2005, de-reserving 108 items from the list reserved for exclusive manufacture by small-scale industries. The revised list now contains 506 reserved items. RBI forwarded this notification to all Primary (Urban) Co-operative Banks for information and action.
What it means for you
UCBs must adjust their lending policies and priority sector classification for units manufacturing these de-reserved items, as they no longer enjoy SSI exclusivity. This may affect working capital limits, collateral requirements, and eligibility for certain government schemes. Banks should update their internal records and communicate changes to borrowers.
What you must do
- Update internal databases to reflect the revised list of 506 reserved SSI items.
- Review existing loan accounts of units manufacturing de-reserved items and reclassify if needed.
- Inform borrowers about the change in SSI status and its implications on their credit facilities.
- Ensure compliance with priority sector lending norms for the affected units.
Who it affects
Primary (Urban) Co-operative Banks, Small-scale industrial units, Borrowers in SSI sector
What is the effective date of this de-reservation?
The de-reservation is effective from March 28, 2005, the date of the Gazette Notification S.O. 420(E).
How many items remain reserved for SSI exclusive manufacture after this change?
As of March 28, 2005, the number of items reserved for exclusive manufacture in the small-scale sector stands at 506.