Deputy Governor of Reserve Bank of India Swaminathan J
Reserve Bank of India Deputy Governor Swaminathan J held a meeting with senior officials of major banks on Monday. During this, he asked the lenders to be sympathetic with the micro, small and medium enterprises (MSMEs) facing economic crises. Also mentioned that the MSME needs more participation in platforms like digital solution, alternative loan evaluation model and TREDS to reduce the challenges faced by the MSME sector.
Swaminathan was addressing the 29th meeting of the Permanent Advisory Committee (SAC) to review the loan to MSME. During this, he said that there are many challenges such as delayed payment, information disparity and lack of financial literacy in the MSME sector. He said that to reduce these challenges, more participation of platforms such as digital solutions, alternative loan evaluation models and TREDS should be ensured.
He mentioned that the Reserve Bank is taking steps towards strengthening the MSME sector through initiatives like Unified Landing Interface (ULI), account aggregator structure and regulatory sandbox.
According to recent data, MSME has been given about 16,000 loans worth Rs 14,500 crore under the ULI (Digital Public Infrastructure of Reserve Bank like UPI for loan).
The Reserve Bank issued a statement on Monday, saying, ‘In the meeting, SAC reviewed the flow of loan to MSME and has discussed many other issues including ways to resolve issues related to debt intervals, cash flow based loans and better credit linkage, to speed up adoption of TREDS, increase the use of debt guarantee schemes and active revival of financial crisis.’
Apart from senior officials of major banks, the meeting was attended by the Reserve Bank Executive Director, MSME Ministry and Senior Officer of Financial Services Department of Finance Ministry. In addition, the Indian Banks Association (IBA), Finance Industry Development Council (FIDC) and senior officials of MSME associations as well as the Chairman of the Small Industries Development Bank of India (SIDBI) attended the meeting.
First Published – March 3, 2025 | 10:21 pm IST
Related post
(Tagstotranslate) msme lending India