RBI panel to review credit flow to MSME sector

A meeting of the Reserve Bank of India's Standing Advisory Committee has been convened this month to review the flow of institutional credit to the micro, small and medium enterprises (MSME) sector, according to the fortnightly e-newsletter of the Federation of Indian Micro, Small and Medium Enterprises (FISME).

The RBI has constituted the Standing Advisory Committee (SAC) with Deputy Governor K C Chakrabarty as chairman. The officials of the ministry of micro, small and medium enterprises, banks and associations of the MSME sector are members of the SAC.

The committee has been mandated to examine issues relating to credit availability to the MSME sector. It will also examine the constraints and the steps being taken to overcome them, so that the institutional credit flow to MSMEs improves.

On the agenda for the meeting is a review of credit to the MSME sector, the newsletter said. In this regard, it will review data on outstanding credit to the sector as on December 31, 2013 as received from the banks; suggestions received from industry association and chambers; and recent initiatives to facilitate credit flow to the sector.

The committee will also review findings of the IBA (Indian Banks' Association) on 'Quick Study on the MSE sector' and release of long-pending claims of banks under the erstwhile PMRY (Prime Minister's Rozgar Yojana) subsidy, the newsletter added.