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of <h1>RBI Circular: New MSME Classification Criteria Based on Investment and Turnover Effective July 1, 2020.</h1> The circular from the Reserve Bank of India (RBI) informs financial institutions about the new criteria for classifying Micro, Small, and Medium Enterprises (MSMEs) effective from July 1, 2020, as per the Government of India's notification. Enterprises are classified based on investment in plant and machinery or equipment and turnover. The criteria include specific investment and turnover limits for micro, small, and medium enterprises. The circular also outlines how investment and turnover should be calculated, including considerations for new enterprises and the treatment of exports. Financial institutions are advised to implement these changes and update their classification procedures accordingly.
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