Source: BS
Context:
The 30th meeting of the Standing Advisory Committee (SAC) to review the flow of credit to the Micro, Small and Medium Enterprises (MSME) sector was held in Coimbatore, chaired by RBI Deputy Governor Swaminathan J.
The meeting served as a platform for MSME industry associations to voice concerns related to geopolitical uncertainties and credit challenges.
MSME Sector Concerns
- Industry associations highlighted challenges such as:
- Uncertainty due to global geopolitical tensions, which has disrupted trade and input supply chains.
- Rising input costs, export slowdowns, and tightening credit conditions.
- They sought government, regulatory, and banking intervention to ensure sustained credit flow and timely policy support.
Recent Regulatory Measures
- Waiver of prepayment charges on floating-rate loans given to:
- Individuals, and
- Micro and small enterprises (MSEs).
- Objective: To provide greater financial flexibility and reduce the cost of credit for small borrowers.
- Part of RBI’s broader effort to improve credit accessibility and repayment ease in the MSME ecosystem.
