RBI panel on MSMEs invites public suggestions on various aspects

An appointed panel by the Reserve Bank of India (RBI) has invited public suggestions and views on long term solutions for economic and financial stability of MSMEs including ways to improve credit rating mechanism to help them raise funds at competitive rates.

The panel is undertaking a comprehensive review to understand the causes and propose long term solutions besides it also wants to know about the infrastructure gaps and problems affecting the development and growth of MSME clusters. The panel has also invited suggestions for improving onboarding and accessing finance through TReDS till March 28, 2019.

Reserve Bank of India constituted an ‘Expert Committee on Micro, Small & Medium Enterprises (MSMEs)’ in January under former SEBI chairman UK Sinha to understand the structural bottlenecks and factors affecting the performance of the sector. 

The Government offers various schemes and benefits for the development of MSMEs but still it faces a lot of problems in getting credit at affordable rates. Earlier this year,  RBI had allowed the recasting of loans to stressed micro, small and medium enterprises of upto Rs 25 crore.

Currently, micro enterprises in the manufacturing sector are those in which the investment in plant and machinery is below Rs 25 lakh. Those with investment between Rs 25 lakh and Rs 5 crore are classified as small enterprises and those having investment and machinery between Rs 5 crore and Rs 10 crore are classified as medium enterprises. There is a separate investment criteria for classification of micro, small and medium enterprises (MSMEs) in the services sector.

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