RBI Patna Chief Urges PSBs To Speed Up MSME Credit Disbursement

Patna, Nov 16 (KNN) The Reserve Bank of India's (RBI) Regional Director in Patna, Sujit Kumar Arvind, has called upon underperforming public sector banks to expedite credit disbursement to eligible micro, small and medium enterprises (MSMEs). 

The directive came during the 68th empowered committee meeting held at RBI Patna, where state heads of 14 major banks convened to review MSME lending practices.

During the meeting, Arvind specifically addressed private sector financial institutions, encouraging them to improve their performance in government-sponsored schemes, expand coverage under the Credit Guarantee Scheme, and facilitate the formalisation of Informal Micro Enterprises through the Udyam Assist Portal. 

The quarterly gathering, which included senior officials from various government departments and industry associations, serves as a platform to evaluate banks' MSME credit performance.

The committee's discussions encompassed crucial aspects of MSME financing, including segment-wise lending progress, collateral-free loans, stressed assets, and non-performing assets (NPAs). 

Notable progress was reported for the July-September 2024 quarter, with member banks achieving more than 44.7 per cent of their annual credit targets while successfully reducing both NPAs and stressed assets.

Arvind also emphasised the critical importance of banks adhering to the established framework for the revival and rehabilitation of stressed MSME units, underscoring the RBI's commitment to supporting the MSME sector's financial health and growth.

(KNN Bureau)