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. Following 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 ensure 10% annual growth in number of micro enterprise accounts.
Top Section
Explore Business Standard