RBI examines the credit flow to the MSME sector

At its meeting on Friday in Lucknow, the RBI’s Standing Advisory Committee (SAC) evaluated the flow of credit to Micro, Small, and Medium Enterprises, a central bank stated in a statement.

The 28th SAC meeting was presided over by RBI Deputy Governor Swaminathan J, and top representatives from the MSME and finance ministries were present.

“During the meeting, the SAC reviewed the flow of credit to MSMEs and deliberated on issues related to assessing and bridging the credit gap for the sector, exploring digital solutions for improved credit linkage, accelerating adoption of TReDS, providing credit support to women entrepreneurs, revival and rehabilitation of stressed MSMEs, and credit guarantee schemes, among others,” the RBI said.

In his keynote presentation, the deputy governor emphasized the important significance of the MSME sector, especially in light of the goal of becoming a developed economy by 2047.

To maximize the potential of MSMEs, he emphasized the necessity for coordinated efforts from all stakeholders.

The Account Aggregator (AA) framework, the digital Public Tech Platform to allow the delivery of frictionless credit, and the regulatory sandbox on MSME lending were just a few of the measures mentioned by Swaminathan that the RBI has undertaken.

He also focused on the crucial role that industry groups play in educating and empowering MSMEs, according to the RBI.

The meeting included participation from the Chairman of SIDBI, the Executive Director of RBI, senior management from major banks and NABARD, senior executives from the Khadi and Village Industries Commission, the National Credit Guarantee Trustee Company Limited, as well as the Indian Banks’ Association and MSME Associations.