RBI Calls For Stronger MSME Credit, Market Access In Jammu And Kashmir, Ladakh

Srinagar, Nov 11 (KNN) The Reserve Bank of India (RBI) has called for strengthening institutional credit, improving market access and promoting formalisation of Micro, Small and Medium Enterprises (MSMEs) in Jammu and Kashmir and Ladakh.

The issues were discussed at the 72nd meeting of the Empowered Committee on MSMEs for the two Union Territories, convened by RBI Jammu for the quarter ended September 30, 2026.

The meeting was chaired by Prabhakar Jha, Regional Director, RBI Jammu, and attended by representatives of government departments, banks, financial institutions and industry associations, reported Kashmir Observer.

In his inaugural address, Jha highlighted the MSME sector's role in economic growth, employment generation and entrepreneurship, identifying handicrafts, handloom, food processing, horticulture and tourism as key areas of potential in the region.

RBI Calls For Stronger Institutional Credit And Market Access

He urged banks to strengthen institutional credit and market access for MSMEs through wider adoption of Udyam Registration, Udyam Assist and the Trade Receivables Discounting System (TReDS). He also called for expanding MSME coverage under credit guarantee schemes.

Credit Flow And Government Schemes Reviewed

The Committee reviewed credit flow to the MSME sector, district-wise credit deployment and progress against targets under the MSME Annual Credit Plan 2026-27.

Discussions also covered collateral-free lending, non-performing assets (NPAs) and coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The progress of government-sponsored schemes, including the Prime Minister's Employment Generation Programme (PMEGP), PM-SVANidhi, PM-MUDRA and PM-Vishwakarma, was also assessed.

Focus On Revival Of Stressed MSMEs And Banking Access

The Committee further reviewed the implementation of the Framework for Revival and Rehabilitation of stressed MSME units and delays in processing loan applications of up to Rs 25 lakh from Micro and Small Enterprise borrowers.

The availability of banking facilities in MSME clusters also featured in the discussions.

Participating banks and stakeholders assured the Committee of follow-up action on the issues raised to improve credit availability and strengthen the MSME ecosystem across Jammu and Kashmir and Ladakh.

(KNN Bureau)