No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2021-22/47 · issued 04 Jun 2021 · ~2 min read
Quick answerRBI has increased the aggregate exposure limit for MSME restructuring under Resolution Framework 2.0 from ₹25 crore to ₹50 crore as on March 31, 2021, expanding eligibility for more borrowers.
What changed
The aggregate exposure threshold for MSME accounts eligible for restructuring under the Resolution Framework 2.0 has been revised upward from ₹25 crore to ₹50 crore as on March 31, 2021. This change modifies clause 2(iii) of the May 5, 2021 circular, while all other conditions remain unchanged.
What it means for you
Banks and lenders can now offer restructuring to MSME borrowers with higher aggregate exposures, up to ₹50 crore, potentially covering more stressed accounts. This provides greater flexibility to support larger MSMEs impacted by Covid-19, but lenders must ensure compliance with other eligibility criteria and not duplicate restructuring from earlier schemes.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal systems and loan tracking to reflect the new ₹50 crore threshold for MSME restructuring eligibility.
Review existing MSME portfolios to identify accounts with aggregate exposure between ₹25 crore and ₹50 crore that may now qualify.
Ensure that restructured accounts under this framework do not overlap with previous restructuring schemes listed in clause 2(v).
Communicate the revised limit to credit and risk teams for consistent application across branches.
Who it affects
All Commercial Banks including Small Finance Banks, Local Area Banks, and Regional Rural Banks, All Primary (Urban) Co-operative Banks, State Co-operative Banks, and District Central Co-operative Banks, All Non-Banking Financial Companies including Housing Finance Companies, All-India Financial Institutions, MSME borrowers with aggregate exposure up to ₹50 crore
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 08:02 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this revision apply to all MSME restructuring requests?
Yes, the revised threshold of ₹50 crore applies to all MSME accounts being considered under Resolution Framework 2.0, provided they meet other eligibility conditions like not having been restructured under earlier circulars.
What is the effective date for the new threshold?
The threshold is based on aggregate exposure as on March 31, 2021, and the circular was issued on June 4, 2021, so lenders should apply it immediately for eligible accounts.
Are non-fund based facilities included in the aggregate exposure?
Yes, the aggregate exposure includes both fund-based and non-fund based facilities from all lending institutions to the MSME borrower.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #304: DOR.STR.REC.21/21.04.048/2021-22 — "Resolution Framework - 2.0 : Resolution of Covid-19 Related Stress of Micro, Small and Medium Enterprises (MSMEs) - Revisio”
📜 Read the original circular — full text as issued by RBI
RBI/2021-22/47
DOR.STR.REC.21/21.04.048/2021-22
June 4, 2021
All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks
All All-India Financial Institutions
All Non-Banking Financial Companies (including Housing Finance Companies)
Madam / Dear Sir,
Resolution Framework - 2.0: Resolution of Covid-19 related stress of Micro, Small and
Medium Enterprises (MSMEs) – Revision in the threshold for aggregate exposure
A reference is invited to the circular DOR.STR.REC.12/21.04.048/2021-22 on “Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” dated May 5, 2021.
2. Clause 2 of the above circular specifies the eligibility conditions for MSME accounts to be considered for restructuring under the framework, which inter alia include sub-clause (iii) which states that the aggregate exposure, including non-fund based facilities, of all lending institutions to the MSME borrower should not exceed ₹25 crore as on March 31, 2021.
3. Based on a review, it has been decided to enhance the above limit from ₹25 crore to ₹50 crore.
4. Consequently, clause 2(v) would stand modified as under:
“(v) The borrower’s account was not restructured in terms of the circulars DOR.No.BP.BC/4/21.04.048/2020-21 dated August 6, 2020 ; DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020 ; or DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019 (collectively referred to as MSME restructuring circulars) or the circular DOR.No.BP.BC/3/21.04.048/2020-21 dated August 6, 2020 on “Resolution Framework for COVID-19-related Stress.”
5. All other provisions of the circular remain unchanged.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/47 · issued 04 Jun 2021. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12105&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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