Extend collateral free loans to MSME, RBI tells banks in J&K

Extend collateral free loans to MSME, RBI tells banks in J&K

JAMMU: To monitor credit flow to micro, small and meduum enterprise (MSME) sectorin Jammu and Kashmir, Reserve Bank of India Friday convened a meeting here on Friday.
According to an RBI spokesperson, the meeting along with State Level Inter Institutional Committee (SLIIC) Meeting was held under the Co-Chairmanship of Khurshid Ahmad Ganai, Financial Commissioner, Industries and Commerce, Government of Jammu and Kashmir and KK Saraf, Regional Director, RBI for J&K. In addition, Ramesh Chand, DGM, RBI, senior officials from state government and major banks, SIDBI, Director (MSME), convenor SLBC and representatives from industry associations, participated in the meeting.
Regional Director, RBI, in his opening remarks, explained the purpose of constitution of EC on MSME and its importance in removing bottlenecks, if any, to ensure smooth flow of credit to the sector. He exhorted the bankers to follow RBI guidelines on rehabilitation, nursing and hand holding of sick units scrupulously. Financial Commissioner, Industries and Commerce, expressing his satisfaction over the achievement of financial target and physical target, emphasized the need for wide publicity of Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme, especially with reference to collateral free lending up to Rs10 lakh by banks. Both Saraf and Ganie advised all the banks to extend collateral free loans to all Micro and Small Enterprises (MSE) borrowers as per extant guidelines.