RBI constitutes Expert Committee on MSMEs

To suggest long term solutions for the economic and financial sustainability of the MSME sector

As announced in the Fifth Bi-Monthly Monetary Policy Statement for 2018-19 on 5 December 2018, RBI has constituted an Expert Committee on Micro, Small and Medium Enterprises under the chairmanship of U.K. Sinha, Former Chairman, Securities and Exchange Board of India

Considering the importance of the MSMEs in the Indian economy, it is essential to understand the structural bottlenecks and factors affecting the performance of the MSMEs. It has, therefore, been considered necessary that a comprehensive review is undertaken to identify causes and propose long term solutions, for the economic and financial sustainability of the MSME sector.

The members of the committee income Ram Mohan Mishra, Additional Secretary, Development Commissioner MSME, Pankaj Jain, Joint Secretary, Department of Financial Services, P. K. Gupta, Managing Director, SBI, Anup Bagchi, Executive Director, ICICI Bank, Abhiman Das, Professor, IIM-Ahmedabad, Sharad Sharma, Co-Founder, iSPIRT Foundation and Bindu Ananth, Chair, Dvara Trust.

The terms of reference of the committee includes a. to review the current institutional framework in place to support the MSME sector, b. to study the impact of the recent economic reforms on the sector and identify the structural problems affecting its growth, c. to examine the factors affecting the timely and adequate availability of finance to the sector, d. to study the global best practices with respect to MSMEs and recommend its adoption in India, wherever appropriate, e. to review the existing MSME focused policies and its impact on the sector, f. to propose measures for leveraging technology in accelerating growth of the sector, g. to suggest long-term solutions for the economic and financial sustainability of the MSME sector.

The Expert Committee will submit its report by the end of June 2019.

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