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Banks should facilitate MSMEs with right advice and guidance: Expert

Updated: Aug 21, 2018 09:29:18am
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Banks should facilitate MSMEs with right advice and guidance: Expert

New Delhi, Aug 21 (KNN) Banks should help Micro, Small and Medium enterprises (MSMEs) with right advice and guidance including handholding, wherever required relating to their financial planning and discipline, said A.K. Mattu, General Manger of RBI for Jammu & Kashmir.

Speaking at the 10th workshop on National Mission for Capacity Building of Bankers for Financing MSME sector (NAMCABS-2.0) organized by RBI, Jammu on August 20-21, 2018, Mattu impressed upon the need to make concerted efforts and sought dedication and commitment from banking community, for aiding the process of development of the MSME sector by ensuring adequacy of funds timely.

Highlighting the importance of MSME sector and their contribution towards GDP, he said that as of now only very small percentage of MSME entrepreneurs are sourcing their requirement from organized channels and more than 90% of these entrepreneurs are still dependent on informal sources of high cost debt which is draining their precious earnings.

Thus, there is a huge potential of business opportunity for the banks, he added.

Besides, he said that the signals of incipient sickness among them must be identified at the earliest and the viability and rehabilitation, wherever required should be resorted to timely.

Around 22 bankers i.e. officers and branch managers from various banks functioning in the State participated in the workshop.

Satish Sharma, AGM, RBI in his welcome address, reiterated the significance of conducting this workshop, which was to enhance capacity and understanding of the bankers including the development of appropriate skills for handling the MSME entrepreneurs. 

The workshop envisaged focus on the entrepreneurial sensitivity, soft skills required handling the first generation entrepreneurs as well as existing MSME borrowers, timely and adequate funding to the MSME customers and prompt rehabilitation measures to revive viable MSME units, etc.

Various sessions relating to RBI/ Government initiatives and schemes on MSME lending, CGTMSE scheme, entrepreneurial sensitivity, credit appraisal techniques and risk mitigation in financing of MSMEs, credit monitoring system, management of NPAs, restructuring, revival and rehabilitation of MSME accounts, SME lending under Basel regime and technology platform for financing MSMEs etc were conducted by experts from RBI, J&K Bank, RIXIL and Quality Council of India.

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