Chennai, Jan 31 (PTI) In tune with the RBI’s policy, the State Level Bankers’ Committee in Tamil Nadu Thursday urged bankers to streamline credit flow to the micro, small and medium enterprises (MSMEs), saying the sector needed more attention. Also Read - Anyone Who Wants COVID Vaccine Could Get it This Spring: US President Joe Biden
SLBC Chairman R Subramania Kumar, in a statement, said there was huge scope for expanding credit to the sector since a large number of MSME units were present in the state. Also Read - United Kingdom Launches New Global Platform to Track New COVID-19 Variants
The SLBC is an inter-institutional forum at state-level ensuring co-ordination between government and banks on matters pertaining to banking development and city-headquartered Indian Overseas Bank is the Convenor Bank of the committee in Tamil Nadu. Also Read - Farmers' Protest in Delhi Turns Violent as Protesters Clash With Police | 10 Points
Kumar who is also the Managing Director and CEO of IOB, said, “Bankers have to make a realistic assessment of the credit requirement and provide adequate credit on time by making use of automated portals so that the MSMEs need not look outside the Banking system for additional finance.” The processing time should be reduced, sanctions to be conveyed quickly and time norms as prescribed by RBI should be complied with. This would save the MSME units from getting trapped in high interest credit cycle” Kumar said.
The SLBC also urged bankers to extend restructuring facilities to all the eligible MSME units, besides advising the banking industry to assess the issues faced by the sector.
Reserve Bank of India had provided special training to nearly 11,000 officers at various commercial banks on lending to micro, small and medium enterprises.
This training has been provided to officers working at nearly 3,000 bank branches covering all districts in the country through more than 2,000 special workshops in the last three years.
This is published unedited from the PTI feed.