RBI Taps Digital Platforms, Eases Rules to Address MSME Credit Gaps and Challenges

ENA MSME 2025-10-28 18:13:09 New Delhi, Oct 28 (KNN) Recognising the Micro, Small and Medium Enterprises (MSME) sector as the backbone of Indias economic growth, Reserve Bank of India (RBI) Deputy Governor Swaminathan J reaffirmed the central banks continued commitment to strengthening the MSME credit ecosystem. Delivering the keynote address at the 30th Meeting of the Standing Advisory Committee (SAC) on MSME credit flow, held in Coimbatore on Monday, the Deputy Governor described the MSME sector as a key driver of employment, entrepreneurship, and regional industrial diversification. He highlighted the RBIs ongoing initiatives—such as the Unified Lending Interface (ULI), Account Aggregator framework, and the Regulatory Sandbox—that are promoting data-driven and cash-flow-based lending to enhance MSME access to finance. The Deputy Governor outlined several recent regulatory measures aimed at easing operational and financial challenges for MSMEs. These include the waiver of prepayment charges on floating-rate loans for individuals and micro and small enterprises, as well as relaxations in reporting requirements under the Export and Import Data Processing and Monitoring Systems (EDPMS/IDPMS) to reduce the compliance burden for small exporters and importers. Addressing persistent challenges such as information asymmetry, financial literacy gaps, and delayed payments, Swaminathan J emphasized the importance of expanding the use of digital platforms like the Trade Receivables Discounting System (TReDS), developing alternative credit assessment models, and ensuring fair, transparent, and empathetic lending practices to support the rehabilitation of distressed but viable MSME units. He also called upon MSME associations to play a proactive role in capacity building and bridging information gaps to help enterprises better access formal financial systems. The SAC meeting reviewed the overall flow of credit to MSMEs and deliberated on strategies to reduce the credit gap, accelerate TReDS adoption, enhance credit guarantee coverage, and support revival and rehabilitation of stressed units. During the interactive session, industry associations voiced concerns over the impact of global geopolitical uncertainties on MSME operations and sought continued support from the Government, Regulators, and Banks. The meeting concluded with officials assuring that all feedback and suggestions from stakeholders would be carefully examined for appropriate action. (KNN Bureau) 43913 https://knnindia.co.in/news/newsdetails/msme/rbi-taps-digital-platforms-eases-rules-to-address-msme-credit-gaps-and-challenges 2025-10-28 18:13:09 knnindia.co.in RBI Taps Digital Platforms, Eases Rules to Address MSME Credit Gaps and Challenges