Increasing MSMEs’ access to timely and sufficient formal credit is still a top policy goal for the central bank, according to RBI Governor Sanjay Malhotra on Monday.
The governor met with leaders of MSME associations and a few micro, small, and medium-sized businesses (MSMEs) as part of the Reserve Bank of India’s ongoing interaction with stakeholders.
Malhotra emphasized the crucial role of the MSME sector in India’s economy, which makes a substantial contribution to GDP, exports, and livelihoods, the RBI said in a statement.
He emphasized that one of the Reserve Bank’s top policy priorities continues to be expanding MSMEs’ access to timely and sufficient formal lending. He also described a number of regulatory and policy initiatives the Reserve Bank and the central government had taken for the industry.
To increase their long-term resilience and competitiveness, the governor urged MSMEs to use digital payments, promote formalization, and uphold credit discipline.
The participants offered their opinions and recommendations on operational difficulties and policy matters pertaining to credit flow to the MSME sector during the interactive session. Additionally present at the conference were Deputy Governors SC Murmu, Swaminathan J, and T Rabi Sankar.
