RBI’s U.K. Sinha led committee give the following recommendations for MSME sector:
- The creation of a distressed asset fund, with a corpus of Rs 5,000 crore, structured to assist MSME units in clusters.
- The formation of a government sponsored Fund of Funds of Rs 10,000 crore to support venture capital and private equity firms investing in MSMEs.
- SIDBI should deepen credit markets for MSMEs in underserved districts and regions.
- SIDBI should develop additional instruments for debt and equity to crystallize new sources of funding for MSMEs and MSME lenders.
- The PSBLoansIn59Minutes.com portal should cater to new entrepreneurs, who lacks information like GSTIN, income-tax returns and bank statement
- The threshold of loan should be enhanced up to Rs 5 crore.
- The introduction of adjusted priority sector lending guidelines for banks to specialize in lending to a specific sector, doubling the collateral free loan limit to Rs 20 lakh and providing insurance coverage to MSME employees by the government.
Static/Current Takeaways Important For ESIC/EPFO Mains:
- RBI 25th Governor: Shaktikant Das, Headquarters: Mumbai, Founded: 1 April 1935, Kolkata.
Source: The Live Mint