Even before the pandemic, the restructuring scheme was in force to help borrowers in micro-small and medium enterprises (MSMEs) category manage the effects of economic slow-down.

       After the first Covid-19 pandemic, the Reserve Bank of India implemented a much-elaborated debt recast scheme to soften the blow for hard-hit borrowers. The restructured plan included additional time for repayments, more funding support, and conversion of part of working capital into term credit.

       While these packages help restructured MSME accounts stay afloat during difficult times, the economic recovery and timely payments by customers will have a greater impact on their future.