Chief Secy urges banks to facilitate entrepreneurs under Mudra, other schemes

SRINAGAR: Chief secretary, BR Sharma, on Wednesday urged major banks including J&K Bank operating in the state to proactively facilitate young entrepreneurs to avail loans under the Mudra Scheme.
Chief secretary was speaking while chairing the 2nd meeting of the committee constituted for the implementation of 12 major action points for enhancing credit flow in J&K, approved by the RBI governor, Raghuram Rajan during the discussions held with the finance minister, Dr Haseeb Drabu and senior state government officials in September 2015.
Financial commissioner, planning & development, BB Vyas, commissioner secretary finance, Navin K Chaudhary, commissioner secretary, industries & commerce, Shailendra Kumar, regional director RBI, D Sethy, chief general manager SBI, general manager Canara Bank, field general manager PNB, executive president, J&K Bank, credit head north, HDFC Bank and other officers were present in the meeting.
Sharma said in terms of RBI guidelines on lending to MSME sector, our young entrepreneurs should know that Banks are mandated not to accept collateral security in the case of loans upto Rs 10 Lakh extending to units in the Micro-small enterprise (MSE) sector.
He asked banks to reach out to these young entrepreneurs and extend loan facilities to them under the Mudra and other start up schemes meant to encourage aspiring youngsters to become first generation entrepreneurs as also to existing small businesses to expand their activities.