PM Narendra Modi urges banks to lend to start-ups and MSMEs amid Covid-19

Calls for effective participation of public sector in banking and insurance

Prime Minister Narendra Modi on Friday urged banks to lend to start-ups and micro, small and medium enterprises (MSMEs), hit hardest by the Covid-19 pandemic.

“As our economy is growing, credit flow has also become equally important. You have to see how credit reaches new sectors, new entrepreneurs,” Modi said while addressing a webinar on effective implementation of Budget announcements for financial services. “Supporting MSMEs and start-ups and expanding credit flow to them is necessary.”

Amid the pandemic, the government has extended credit worth Rs 2.4 trillion to 9 million MSMEs. “Now it’s the responsibility of the financial sector to understand the