MSME Resolution / Restructuring Framework

This framework is adopted in line with RBI circulars on Restructuring of Advances to Micro, Small and Medium Enterprises (MSMEs), and is read together with our Board-approved Credit Policy.

1. Eligibility

• The borrower is classified as MSME under the MSMED Act, 2006 / Udyam registration.
• The aggregate exposure of the banking system to the borrower does not exceed the limit prescribed by RBI.
• The account was a Standard asset as on the cut-off date prescribed by the relevant RBI circular.
• Borrower is GST-registered, where applicable.

2. Application

An MSME borrower facing temporary financial difficulty may apply for restructuring by writing to msme@evamfinance.com, accompanied by audited / provisional financials, cash-flow projections and reasons for stress.

3. Evaluation

• The credit team conducts a viability assessment of the business.
• Where viable, a restructuring plan — including revised repayment schedule, fresh moratorium, or working-capital relief — is drawn up.
• Plans are approved by the [TO BE PROVIDED BY EVAM] Committee within the timelines prescribed by RBI.

4. Asset Classification & Provisioning

Restructured accounts are classified, upgraded and provisioned strictly in line with RBI's IRAC norms applicable to MSME restructuring.

5. Reporting & Disclosure

All restructurings are reported to the Credit Information Companies (CICs) with the "restructured" flag. Aggregate disclosure is made in the financial statements.