New Delhi, Nov 24 (KNN) Ministry of MSME discussed the issues related to the micro, small and medium enterprises sector including financing by banks with Finance Minister Arun Jaitley. During the meeting it was noted that the State-wise targets allocated by the banks needed to be reviewed, keeping in view not only the population size, but also the business potential of the state.
 
Anup Pujari, Secretary, Ministry of Micro, Small and Medium Enterprises (MSME) discussed issues related to MSME sector including financing by banks. 
 
Union Finance Minister Shri Arun Jaitley said that the Public Sector Banks (PSBs) have made great contribution in rebuilding the economy of the country. However, the Finance Minister asked the bankers to get rid of their past scars of Non-Performing Assets (NPAs) and clean-up their balance sheet at the earliest.
 
Jaitley also assured them full support of his Government in this regard. He said that the Government will take necessary policy corrective measures wherever required. He was addressing the Chief Executive Officers (CEOs) of the PSBs here on Monday while chairing the Quarterly Review Meeting of the PSBs.
 
Secretary, Ministry of New and Renewable Energy (MNRE) briefed the meeting about the commitment of Banks to fund Renewable Energy Projects in the next five years and praised the efforts made by banks.
 
Secretary, Ministry of Food Processing Industries briefed the participants about the utilization of Special Fund of Rs. 2000 crore set-up to provide affordable credit to designated food parks (including mega food parks) and food processing units located therein.
 
Secretary, Ministry of Textiles discussed the issue of implementation of the programme for Revival, Reform & Restructuring (RRR) package for the handloom sector and institutional credit to sericulture.
 
Secretary, Ministry of Rural Development Mahapatra discussed the SHG Credit Linkage Plan under different schemes of the department.
 
In addition to the above agenda, and a detailed discussion on various subjects, the other key issues discussed were - steps being taken to improve credit growth in the PSBs; issue of asset quality; institutional measures being taken to assist Banks in reducing NPAs; Pradhan Mantri Mudra Yojana and more.
 
The meeting dwelt at length on ways to increase the impact of the Pradhan Mantri Mudra Yojana. Jaitley urged the banks to accelerate disbursements as PSBs were expected to achieve a potential of at least Rs 70,000 crore during the current financial year.
 
It was noted that the Indian Banks’ Association had put together a phased publicity plan, to ensure that eligible entrepreneurs were fully informed about PMMY, and thereby enabled to approach banks with their projects.
 
While the banks increased publicity for the scheme, the demand side was being addressed by linking the skill development centers run by various Central and State Government departments, ITIs and SHGs with the banks’ financial literacy outreach.
 
It was noted that the State-wise targets allocated by the banks needed to be reviewed, keeping in view not only the population size, but also the business potential of the state. The financial literacy outreach was being designed to cover both pre-loan familiarization training and post loan disbursal guidance regarding the credit process, repayments schedules and MSME related facilities.

The meeting was attended among others by the Minister of State for Finance, Jayant Sinha, Deputy Governor, RBI Mundra, Secretary (Financial Services) Anjuli Chib Duggal, as well as Secretaries of various other Ministries of Government of India along with senior officers of the Ministry of Finance. (KNN Bureau)