RBI asks banks to restructure MSME loans, scale up lending

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.