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SIDBI in Partnership with ISARC Launches ARM-MSME, an Asset Restructuring Web Module for MSMEs; Indian Bank Signs MoU with SIDBI for this Module

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Indian Bank in pact with SIDBI for asset restructuring module for MSMEsOn November 30, 2020 Small Industries Development Bank of India (SIDBI) in partnership with India SME Asset Reconstruction Company (ISARC) has launched Asset Restructuring Module for MSMEs-Micro, Small & Medium Enterprises(ARM-MSMEs) in other words Do-It-Yourself (DIY) web module.

  • This web portal helps MSMSEs to get benefit of the Reserve Bank of India(RBI)’s one-time debt restructuring.
  • The portal is offered as part of SIDBI’s developmental initiatives.

Important Info:

Indian Bank has signed a MoU(Memorandum of Understanding) with SIDBI to enable MSME borrowers to use the web module.

Purpose of the Web Module:

To enable MSMEs to prepare their restructuring proposals / financial viability assessments and submit them to the bank.

Need of the Web Module:

To ease the difficulty of MSMEs to maintain books of account, to prepare final statements and submit these to banks.

About ARM-MSMEs

General Info

i.MSMEs with the help of the web module, can prepare restructuring proposals by operating only the most essential data of their past financials, future projections and restructuring requirement.

ii.The reports generated can be submitted to the banks through email or hard copies along with other prescribed documents

Benefits

i.The module can be accessed with free of cost.

ii.It saves cost as the MSMEs have no need to approach the third parties.

iii.The module makes it easier to compare different options of restructuring.

iv.It reduces the turn-around time(time interval from the time of submission of a process to the time of the completion of the process).

Credit Councillors Appointed

i.SIDBI to guide the MSMEs in usage of this module have appointed credit counsellors in 20 MSME cluster locations, in partnership with local MSME industry associations.

ii.If the need arises, the number of locations will be increased.

Note

  • Some of the leading banks have tested the portal for use by their MSME clients.
  • Already, Punjab National Bank(PNB) and Indian Bank have agreed to accept restructuring proposals generated by their MSME customers using this module.

Indian Bank Signs MoU with SIDBI for ARM-MSME

Indian bank has signed a MoU with SIDBI to enable MSME borrowers of the Bank to use the product.

Key People

  • Chitra Alai, General Manager, SIDBI and K S Sudhakara Rao, General Manager (MSME), Indian Bank executed the MoU.
  • The MoU was signed in presence of  Padmaja Chunduru, MD&CEO of Indian Bank, M K Bhattacharya & K Ramachandran, Executive Directors of Indian Bank and Manoj Mittal, DMD(Deputy Managing Director) of SIDBI.

Important Info

The Branches / Zones of Indian Bank will handhold MSMSEs to use this module to submit the restructuring proposals to the Bank.

Additional Info

Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs launched “MSME Prerana” an online business mentoring programme for MSMEs by Indian Bank in collaboration with Poornatha & Co, at the bank’s headquarters in Chennai, Tamil Nadu.

Gist about the Restructing Scheme:

i.RBI has extended the restructuring of MSME debt until March 31, 2021 from December 31, 2020.

ii.This is to support the MSME borrowers who are facing stress due to COVID-19 pandemic.

Points to be Noted

i.ISARC, an SIDBI associate is an Asset Reconstruction Company (ARC).

ii.It is India’s first ARC supported by a large number of public sector banks and undertakings.

Recent Related News:

i.On October 29, 2020 Punjab Government signed a Memorandum of Understanding (MoU) with The Global Alliance for Mass Entrepreneurship (GAME) for a 2 year project on transforming the ease of doing business for MSMEs(Micro, Small & Medium Enterprises) in Punjab.

ii.The Small Industries Development Bank of India (SIDBI) in association with TransUnion CIBIL Limited (formerly Credit Information Bureau (India) Limited) has launched a comprehensive financial education and one-stop knowledge platform for micro, small and medium enterprises “MSMESaksham”.

About India SME Asset Reconstruction Company (ISARC):

Established under– The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act, 2002)

Chief Executive Officer(CEO)– Rishi Dwivedi
Headquarters– Mumbai, Maharashtra

About Indian Bank:

On April 1, 2020, Allahabad Bank amalgamated with Indian Bank.
Incorporated– March 5, 1907
Managing Director (MD) and Chief Executive Officer (CEO)– Padmaja Chunduru
Headquarters– Chennai, Tamil Nadu
Tagline– Your Own Bank