What changed
RBI issued a circular on August 3, 2011, instructing banks to substitute the term 'Micro and Small Enterprises' for 'Small Scale Industries' in all documents. This follows government notifications S.O.1642(E) dated September 29, 2006, and S.O.563(E) dated February 27, 2009.
What it means for you
Banks must update their internal policies, loan documentation, and reporting formats to reflect the new terminology. This ensures consistency with government definitions and may affect priority sector lending classification and MSME reporting.
What you must do
- Update all internal guidelines and instructions to replace 'SSI' with 'Micro and Small Enterprises'.
- Issue suitable instructions to all branches and controlling offices to ensure compliance.
- Acknowledge receipt of the RBI circular to confirm action taken.
Who it affects
All scheduled commercial banks (excluding Regional Rural Banks), Bank branches and controlling offices handling MSME lending
Does this circular apply to Regional Rural Banks?
No, the circular explicitly excludes Regional Rural Banks from its scope.
What government notifications are referenced in this circular?
The circular references S.O.1642(E) dated September 29, 2006, from the Ministry of Small Scale Industries, and S.O.563(E) dated February 27, 2009, from the Ministry of Commerce and Industry.