Impact of NPA Guidelines on MSMEs The Reserve Bank of India (RBI) has issued detailed guidelines to all scheduled commercial banks on lending to micro, small and medium enterprises (MSME) sector which, inter alia, provide for a time frame for disposal of loan applications, loan limit for dispensing the collateral requirement and sub-targets for micro enterprises within the MSE lending. In terms of the recommendations of the Prime Minister's Task Force on MSMEs (2010), the RBI has advised the banks to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises, to allocate 60% of the MSE advances to the micro enterprises and to maintain 10% annual growth in number of micro enterprise accounts. This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Kalrja Mishra in a written reply to a question in Rajya Sabha here today.
