RBI RD chairs empowered committee meeting of MSME

Excelsior Correspondent

JAMMU, May 27: The 66th meeting of the Empowered Committee on Micro, Small and Medium Enterprises (MSMEs) for the UTs of J&K and Ladakh for the quarter ended March 31, 2025, was held at Reserve Bank of India, here.
The meeting was chaired by Chandrashekhar Azad, Regional Director, Reserve Bank of India, Jammu and attended, among others, by Joint Director, Industries and Commerce
Department, Jammu; Assistant Director, MSME-DFO; Executive Officer, KVIB, UT of J&K; Controlling heads of various banks viz, J&K Bank, SBI, PNB, Canara Bank, ICICI Bank, HDFC Bank, Axis Bank, Jammu and Kashmir Grameen Bank; officials from convenor banks of UT Level Bankers Committee, J&K and Ladakh; Industry Associations viz, ICC, FTII; SIDBI and officials from RBI, Jammu.
Regional Director RBI in his opening remarks emphasised on the critical role of MSMEs in the economy and their contribution to GDP, exports and employment generation. He touched upon the key announcements relating to MSME in the Union Budget 2025-26 such as increase in investment and turnover thresholds for MSME classification, enhancement of credit guarantee coverage for micro and small enterprises from Rs 5 crore to Rs 10 crore, increase in credit guarantee cover for loans to startups and exporters etc.
Azad shared that Reserve Bank of India (RBI) has consistently prioritised the inclusion of MSMEs in the formal financial system through a range of targeted measures which includes, among others, Priority Sector Lending (PSL) guidelines, collateral free loans up to Rs 10 lakh for micro and small enterprises (MSEs), Trade Receivables Discounting System (TReDS) for hassle free discounting of bills, Account Aggregator (AA) framework and introduction of Unified Lending Interface (ULI). He urged Industry Associations to encourage MSMEs to obtain Udyam registration, embrace formalisation, ensure credit discipline and prioritise on boarding on TReDS. He shared with the house that banks had collectively achieved 181% of the target under the Annual Credit Plan (ACP) for 2024-25 for extending credit to MSME sector in UT of J&K and complimented banks for achieving the feat.
The Committee reviewed the performance of banks in achievement of targets under ACP 2024-25, position of Udyam registration by MSMEs, status of on boarding of buyers and sellers on TReDS platform, position of NPAs in the MSME sector, CG TMSE coverage, achievement of targets recommended by the Prime Minister Task Force on MSMEs, review of sponsored cases under PMEGP etc.

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