Mumbai, Sept 23 (KNN) Lending to micro, small and medium enterprise (MSME) entrepreneurs, especially in e-commerce space, makes a strong business case for the banks given the changing dynamics of the economy, said Reserve Bank of India Governor Raghuram Rajan.

"Lending to MSME entrepreneurs, especially in e-commerce space makes a strong business case for the banks given the changing dynamics in the economy, such as, demographic patterns; urbanization trends; increasing disposable income and dependence on technology platforms; growth in internet user base and availability of easy payment options," Rajan said while speaking at a Town Hall meeting.
 
The Town Hall was arranged to create awareness of banking facilities for MSME enterprises engaged in e-commerce business. It was attended by MDs of Punjab National Bank and Oriental Bank of Commerce, and senior officials of the government and industry.

With continuous handholding of MSME entrepreneurs, bankers can help them sell their products on e-commerce space and reach a huge market space without having brick and mortal presence, he said.

Financing of MSMEs across the world has become very significant in recent years, he said.

RBI Regional Director Deepak Singhal emphasised the need for clarity in terms of regulating this new and fast growing sector in view of rapidly changing business models and technology advancement. (KNN Bureau)