In a bid to provide relief to micro, small and medium enterprises (MSME), RBI has asked banks to classify incremental loans given to medium enterprises under the priority sector lending target of 40%.Any company where the investment in plant and machinery is more than R5 crore but does not exceed R10 crore is considered a medium enterprise.RBI has also decided to provide refinance of R5,000 crore to Small Industrial Development Bank of India (Sidbi) for on-lending to micro and small enterprises. Sidbi can directly lend to micro and small companies or provide finance through banks and non-banking finance companies under the refinance window, RBI said in a release on Monday. This facility would be available for up to one year.

Source : http://www.financialexpress.com/news/classify-lending-to-msmes-under-priority-sector-rbi/1196483

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