The government of India has approved the revision in guidelines of the Performance in Credit Rating Scheme which aims to increase its credibility and effectiveness for both borrowers and banks. Under the revised guidelines, the fee to be paid to the rating agencies shall be based on the turnover of the micro and small enterprises which has been categorized into three slabs.
For turnover up to 50 lakh rupees, the fee to be reimbursed by the MSME Ministry will constitute 75 % of the fee charged by the rating agency subject to a ceiling rs.15,000. For turnover between 50 lakh and 2 cr. rs, the fee to be reimbursed will be 75 % of the fee charged by the rating agency subject to a ceiling of rs. 30,000 . Similarly, enterprises having turnover above 2 crore rs, the fee to be reimbursed will be 75 % of the fee charged by the rating agency subject to a ceiling of 40,000 rs.
Besides, only rating agencies registered by SEBI and enrolled as External Credit Assessment Institution (ECAI) by RBI would be eligible to carry out rating of MSEs under the Scheme and as per MSME Ministry, the eligible rating agency should apply to receive subsidy under the PCR Scheme on the portal of National Small Industries Corporation (NSIC). Approval for eligible rating agencies should be given within one month.
So let’s discuss some questions related to this post :
1. The government has revised the norms for which scheme ?
2. Now as per the revised norms, the fee to be paid to rating agencies has been categorized into how many slabs ?
Courtesy : Economic Times