Can BM(Branch Manager) reject MSME case to be referred to CAP committee?

News Letter


Can BM(Branch Manager) reject MSME case to be referred to CAP committee?

To the attention of RBI and Central Govt MSME and all stakeholders.

It has come to my notice one case of India, Madhapur Branch, Hyderabad were for a loan below 1cr, when requested to BM with a copy to their head office in Hyderabad, Once about 6 months back and again 3 months back.

For the first approach, the unit did not get any return reply and for a second, they have not given reasons for rejection without referring to the committee. The A/C is in SMA0, SMA1, and SMA2 category and facing stress.

As per RBI guidelines in March 2016, which is available on their website, and all guidelines have become directives in Aug/Sep 2016, there are few questions are coming.

  1. Whether Branch Manager can reject the proposed without referring to CAP?
  2. Whether this action can be legally challenged?
  3. As there is no punishment or penalty can BM be answerable to anybody?
  4. The unit has, on giving this information in writing to consumer Education and protection cell of RBI, Hyderabad, got a reply that request for Moratorium and restructuring could not have acceded.

So the question is whether RBI’s CEPC cell is a post office only?

I feel similar letter has been given to FIDD, RBI Hyderabad, we still await their response.

Looking to all this, along with editorial of Business Line of 30/6/2018, I feel all stakeholders are giving lip sympathy and no actions are taken and nobody is interested to resolve.



N.P. Desai

Chief Consultant


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