RBI asks banks to restructure MSME loans, scale up lending
Press Trust of India / Mumbai Feb 03, 2009, 20:48 IST
The Reserve Bank of India (RBI) today asked public sector banks to enhance credit flow to fund-starved micro, small and medium enterprises and restructure MSME accounts in a time-bound manner.
At the MSME Advisory meeting held between RBI Deputy Governor Usha Thorat and heads of leading PSBs here, the RBI also asked lenders to provide adequate credit to large corporates to help them make timely payments to MSMEs.
"Owing to the credit crunch, big corporates are delaying payments to small firms for their inventories. This issue came up in the discussion today," Indian Banks' Association Chief Executive K Ramakrishnan told PTI here.
Among the bankers who attended the meeting today were Punjab National Bank Chairman K C Chakrabarty, Union Bank of India CMD M V Nair and Indian Overseas Bank CMD S A Bhatt.
Besides, Secretary to the Ministry of Small and Medium Enterprises Dinesh Rai was also present in the meeting.
India govt in turn RBI must control all MNC bank from charging illegally on credit card,they charge hefty interest of 3.5%permonth beside this they charge late fee also,so only one thing shud be chargeable,Indian public are not much alert to save their expenses,even we feel MNC bank make huge money in form of cheque return charges,late payment charges,penalty,penal interest,all thse shud be check
So we would request that MNC bank shud come under AG Audit.
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