 "RBI asks banks to open more MSE branches")
The Reserve Bank of India has asked banks to open more micro and small enterprises (MSE) focused branches in different MSE clusters.
“The RBI has advised banks to open more MSE focused branch offices at different MSE clusters which can also act as counseling centers for MSEs” said Deepali Pant Joshi, executive director, RBI adding, “Each lead bank of the district may adopt at least one cluster.”
MSE’s often face the lack of bank credit from the banks leading them to access informal sources of credit which are costly.
According to RBI data, bank credit to MSE sector came down to 14.7% of total bank credit in 2012-13 from 16.5% a year ago.
“The RBI has advised banks to open more MSE focused branch offices at different MSE clusters which can also act as counseling centers for MSEs” said Deepali Pant Joshi, executive director, RBI adding, “Each lead bank of the district may adopt at least one cluster.”
MSE’s often face the lack of bank credit from the banks leading them to access informal sources of credit which are costly.
According to RBI data, bank credit to MSE sector came down to 14.7% of total bank credit in 2012-13 from 16.5% a year ago.