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The MSME ministry is in talks with the Reserve Bank to explore ways to improve credit flow to micro, small and medium enterprises across the country, a top government official said on Thursday.
“In order to ensure that credit flow for MSMEs is up to the expectation, gaps are bridged and their problems are addressed, the ministry is holding discussions with the Reserve Bank of India (RBI) about promoting fintech companies which can reach out much better than the scheduled commercial banks to the MSMEs all across India,” MSME Secretary S.K Panda said.
He also said the ministry is looking at measures to address issues pertaining to decline in exports.
“The MSME ministry will constitute a special task force to look at exactly what steps are needed to be taken to enhance exports from the enterprises to make them part of the global value chain,” Panda said while addressing an Assocham conference in New Delhi.
He said the quantum of credit guaranteed by the Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE) may touch Rs 50,000 crore this year.
We have taken some decisions, we are allowing NBFCs (non-banking financial companies) partial collateral and this year, unlike previous years where, from fund we used to guarantee a credit flow of Rs 19,000-20,000 crore every year for last three years, we plan to cross Rs 40,000 crore, it may touch Rs 50,000 crore, Panda said.
He also said the MSME ministry has taken certain concrete steps as part of structural reforms and is thus expecting about four lakh such credit proposals, according to a release issued by Assocham.
Noting that MSMEs comprise almost 95-96 per cent out of the one crore entities registered in the Goods and Services Tax Network (GSTN), Panda said a database is needed to communicate and tell them about the facilities which they can avail.
He said the quantum of credit guaranteed by the Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE) may touch Rs 50,000 crore this year.
We have taken some decisions, we are allowing NBFCs (non-banking financial companies) partial collateral and this year, unlike previous years where, from fund we used to guarantee a credit flow of Rs 19,000-20,000 crore every year for last three years, we plan to cross Rs 40,000 crore, it may touch Rs 50,000 crore, Panda said.
He also said the MSME ministry has taken certain concrete steps as part of structural reforms and is thus expecting about four lakh such credit proposals, according to a release issued by Assocham.
Noting that MSMEs comprise almost 95-96 per cent out of the one crore entities registered in the Goods and Services Tax Network (GSTN), Panda said a database is needed to communicate and tell them about the facilities which they can avail.
