RBI Governor Calls For Digital Push To Bridge MSME Credit Gap

New Delhi, Jun 23 (KNN) The Reserve Bank of India (RBI) is pushing towards a fully digital, low-friction credit ecosystem for micro, small and medium enterprises (MSMEs), with the Unified Lending Interface (ULI) and digital public infrastructure at its core.

Addressing an event to mark International MSME Day in Kochi on Monday, RBI Governor Sanjay Malhotra called on banks and financial institutions to invest in India's digital public infrastructure stack — including the account aggregator framework, ULI, the Trade Receivables Discounting System (TReDS), GST data trails and Aadhaar-enabled authentication. 

Malhotra said, "This will help create conditions for a fundamentally more inclusive credit ecosystem," reported TOI.

Banks Urged to Go Beyond Compliance

He urged banks to accelerate implementation of schemes such as Priority Sector Lending, MUDRA, PM-SVANidhi, PM Vishwakarma and the Credit Guarantee Scheme for micro and small enterprises, and to stop viewing MSME lending as a regulatory obligation alone.

"Relationship banking, deepened and informed by digital data, can be a powerful and humanising complement to technology-led credit delivery," he said, calling on lenders to treat MSMEs as long-term business partners whose sustained growth generates durable financial returns and broader social value.

Persistent Gaps Remain

The Governor also flagged structural concerns that continue to constrain MSME financing. A persistent credit gap remains despite recent progress, reflecting the continued under-penetration of formal finance. 

Frictions in credit delivery — including lengthy processes, documentation burdens and underwriting delays — also remain significant, he said, underscoring the need for faster, data-driven lending models.

Malhotra encouraged MSMEs to invest in technology, research and development, and innovation to stay competitive, and urged them to register under the Udyam portal and actively use digital credit platforms.

(KNN Bureau)