Finance Ministry tells state-run banks to shore up credit to MSMEs

Earlier this year, the RBI allowed a one-time restructuring scheme for MSMEs with a maximum exposure of Rs 25 crore

The finance ministry has told the chief executives of all public sector banks (PSBs) to review credit facilities made available to micro, small and medium enterprises (MSMEs) and take ‘corrective’ measures to ensure the firms get adequate funds.

The finance ministry has told the PSB chief executives in an official communication to assign a chief general manager, or a general manager-level officer to “do an in-depth analysis of the progress made and issues in availability of credit, still being faced by the MSMEs”.

While taking “corrective actions” and doing the analysis, nodal general managers are supposed to submit details to the finance