Banks brush aside RBI instructions on handholding of MSEs: FISME study
Updated: Nov 18, 2013 12:35:47pm
New Delhi, Nov 18 (KNN) At least nine large public sector banks are not showing much interest in hand-holding of sick medium and small enterprises (MSEs), in contravention of the RBI instructions for banks to detect and sort out difficulties at early stage to avoid sickness, a FISME study has shown.
RBI guidelines of November 1, 2012 mention that the recent global slowdown has adversely impacted, more specifically, the Micro and Small Enterprises (MSEs) and identification of sickness in MSE enterprises is done so late that the possibilities of revival recede.
Towards proactively supporting the MSEs, RBI has stipulated a ‘Handholding Stage’ when the bank branches should take timely remedial action which includes an enquiry into the operations of the unit, providing guidance/counselling services, timely financial assistance as per established need and also helping the unit in sorting out difficulties which are non‐financial in nature or requiring assistance from other agencies.
But the FISME study on leading banks shows that “banks are not even compiling data about MSE accounts provided handholding and the results of the same".
This clearly indicates the importance, or otherwise, given by the banks to the crucial RBI guidance on addressing the sickness of the MSEs proactively. (KNN/DB)
RBI guidelines of November 1, 2012 mention that the recent global slowdown has adversely impacted, more specifically, the Micro and Small Enterprises (MSEs) and identification of sickness in MSE enterprises is done so late that the possibilities of revival recede.
Towards proactively supporting the MSEs, RBI has stipulated a ‘Handholding Stage’ when the bank branches should take timely remedial action which includes an enquiry into the operations of the unit, providing guidance/counselling services, timely financial assistance as per established need and also helping the unit in sorting out difficulties which are non‐financial in nature or requiring assistance from other agencies.
But the FISME study on leading banks shows that “banks are not even compiling data about MSE accounts provided handholding and the results of the same".
This clearly indicates the importance, or otherwise, given by the banks to the crucial RBI guidance on addressing the sickness of the MSEs proactively. (KNN/DB)
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