The Standing Advisory Committee to review the flow of credit to MSMEs on Friday deliberated on issues related to assessing and bridging the credit gap for the sector and revival and rehabilitation of stressed MSMEs, among others.
The committee, chaired by Swaminathan J, Deputy Governor, Reserve Bank of India, also considered exploring digital solutions for improved credit linkage, accelerating adoption of TReDS (Trade Receivables electronic Discounting System), credit support to women entrepreneurs, and credit guarantee schemes.
MSMEs account for about 5.9 per cent of the non-food credit from the banking system.
In his keynote address, Swaminathan emphasised the significant role of the MSME sector, particularly in the context of the goal of attaining developed economy status by 2047.
He stressed the need for collaborative efforts on the part of all stakeholders to unlock the full potential of MSMEs.
The Deputy Governor said RBI has taken initiatives such as the Account Aggregator (AA) framework, the digital Public Tech Platform to enable delivery of frictionless credit and the regulatory sandbox on MSME lending.
The meeting was attended by senior officials from Ministry of MSME and Department of Financial Services, Ministry of Finance, Government of India; Chairman, SIDBI; Executive Director, RBI; senior management of major banks and NABARD; senior executives of Credit Guarantee Fund Trust for Micro and Small Enterprises, National Credit Guarantee Trustee Company Limited, Khadi & Village Industries Commission, Indian Banks’ Association and MSME Associations.