SRINAGAR: RBI on Tuesday held the 39th Empowered Committee (EC) meeting on Micro and Small and Medium Enterprises (MSMEs) in the State of Jammu & Kashmir here at Srinagar.
General Manager, RBI, Jammu Ashok Kumar Mattu highlighted the potential of MSME sector in employment generation and its contribution to the overall economic growth. He stressed banks to ensure timely and adequate lending to the sector and also to “promptly handhold the entrepreneurs wherever and whenever considered necessary”, a statement issued here read.
He also laid emphasis that banks needed to make special efforts in ensuring CGTMSE coverage in all eligible loan cases particularly when the extent of coverage and cost of cover under the scheme was liberalised. He urged all the stakeholders to join hands and to ensure that the credit needs of this sector did not remain unmet from the formal banking sector.
He stressed the need for creation of sufficient awareness among entrepreneurs and urged the trade bodies, MSME, SIDCO to organise awareness programmes periodically and help create a conducive investment climate in the state.
While reviewing performance of the individual banks in lending to MSME sector during the quarter ended December 31, 2017, he explained that the main purpose of holding the EC meetings was to facilitate an accelerated growth of MSMEs in the state and also to remove various bottlenecks which hindered the smooth flow of credit to the sector.
According to the statement, credit flow to MSME sector in the state increased from Rs10,359.02 crore as on December 31, 2016 to Rs12,569.31 crore as on December 31, 2017, registering an increase of 21.34% year on year basis. The number of accounts which stood at 2,94,525 units as on December 31, 2016 had increased to 3,50,329 units as on December 31, 2017, registering 18.95% growth year on year basis.
The banks collectively surpassed mandated target of 10% growth in number of accounts as well as 20% growth in credit dispensation on YoY basis.
Banks whose performance was not satisfactory were advised to augment the lending to this sector on priority.