The Indian Government has issued certain guidelines in its campaign of MSME support & Outreach where it has asked all the head of the departments of public sector banks to do the detail analysis of issues and progress done in the credit facility that are faced by MSMEs. The main effort of the Government is to make sure that at the time of formalization the work of MSME will not suffer as per the extant guidelines.
MSMEs, micro, small and medium companies are an important constituent of the Indian Economy. The money from this sector contribute significantly to the GDP of country, industrial output, exports, employment generation and much more.
During past years, this sector is facing limitations on many fronts. Hence, in this regard, the Government has launched an outreach initiative the Prime Minister on 2nd November, 2018 to offer access to access to market, credit, and technology up-gradation. It also provide benefits of ease of doing business and a sense of security for MSMEs employees. So, 12 declarations were made to address each of these five categories:
In order to take the further initiative, it was decided by the Government to continue to amalgamate gains of the Outreach Campaign. The notice was issued to the CEOs, Chairman, MDs & SBI of all Public Sector Banks (PSBs). In the notice, it was clearly mentioned and requested that a GM/ CGM level officer can specifically designated to do the detailed analysis of the issues and progress made in availability of credit that are still being faced by the MSMEs.
Furthermore, corrective action and analysis thereof, the nodal GM may, inter alia, can gather stepwise information on the following details as described below:
- The information of MSMEs who are taking credit from the banks.
- Details of MSME accounts which are NPA.
- Information of MSME accounts where resolution/ restructuring has been done according to the circular issued by RBI dated 1st January, 2019
- The details of new MSMEs that is covered during the campaign.
- The details of MSMEs that are still not covered.
Additionally, the circular for submitting the weekly reports to the Department of Financial Services and Ministry of Finance is sent discretely to these PSBs. This campaign will be administered by ED in-charge of MSME Financing. The Head of the Department of all PSBs were also asked that all sincere efforts must be made during the procedure of formalization and MSMEs will not suffer in the process of getting credit. Also, the credit must be available according to the extant guidelines.
