The Centre has asked the heads of all the Public Sector Banks to do an in-depth analysis of the progress made and issues in availability of credit, still being faced by Micro, Small and Medium Enterprises (MSMEs). It has also asked the PSBs to make all out sincere efforts to ensure that during the process of formalisation, the MSMEs may not suffer in want of credit which should be available to them as per the extant guidelines, said a Ministry of Finance statement.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

"Micro, Small and Medium Enterprises (MSMEs) form an important component of the Indian Economy and contribute significantly to the country’s GDP, exports, industrial output, employment generation etc. During the past few years, the said sector has been facing constraints on several fronts," the ministry statement said. 

Notably, the Prime Minister on November 2, 2018 launched an MSME outreach initiative to provide access to credit, access to market, technology up-gradation, ease of doing business and a sense of security for employees of MSMEs. 
In order to consolidate gains of the outreach campaign, the government has decided to take the initiative further. 

In an official communication, the Chairman, SBI and MDs and CEOs of all PSBs, have been directed that "a CGM/GM level officer may be specifically designated to do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs." 

The nodal GM has been instricted to collect stepwise information in the following way: 

1. Details of MSMEs who are taking credit from the bank
2. Details of MSME accounts that are NPA
3. Details of MSME accounts where restructuring/ resolution has been done as per RBI circular dated 1st January, 2019
4. Details of new MSMEs covered during the campaign
5. Details of MSMEs still uncovered 

According to the statement, a proforma for submitting weekly reports to Department of Financial Services (DFS) is being sent separately to these PSBs, and the campaign will be supervised by ED in-charge of MSME Financing. 

The heads of all PSBs have been also asked that all sincere efforts should be made so that during the process of formalisation, the MSMEs may not suffer in want of credit which should be available to them as per the extant guidelines,it added.