New Delhi, Mar 11 (KNN)The Reserve Bank of India (RBI) has issued detailed guidelines to all scheduled commercial banks on lending to the Micro Small and Medium Enterprises (MSME).
The guidelines provide a time frame for disposal of loan applications, loan limit for dispensing the collateral requirement and sub-targets for micro enterprises within the Micro and Small Enterprises (MSE) lending, according to an official statement.
RBI has advised banks to achieve 20 per cent year-on-year growth in credit to MSE and 10 per cent annual growth in the number of micro enterprise accounts in terms of the recommendations of the task force on MSME under the chairmanship of the Principal Secretary to the Prime Minister, the statement added.
Further, banks have been advised that allocation of 60 per cent of the MSE advances to the micro enterprises has to be achieved in stages - 50 percent during 2010-11, 55 per cent in 2011-12 and 60 per cent in 2012-13.
“The Government is implementing various schemes namely, Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating Scheme to facilitate credit flow to the MSME sector,” said Minister of State (Independent Charge) MSME, KH Muniyappa in the RajyaSabharecently.
As per the latest census (fourth census) conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, the number of MSMEs in the country has increased to 361.76 lakh enterprises when compared to 105.21 lakh enterprises in the previous census (third All India Census of Small Scale Industries, 2001-02).
Information on the number of MSMEs functioning in the country has been collected by conducting an All India Census of the sector periodically. (KNN/Gunj)