The 29th Meeting of the Standing Advisory Committee (SAC) to review the credit flow to the Micro, Small, and Medium Enterprises (MSME) sector was held in Ahmedabad under the chairmanship of Shri Swaminathan J, Deputy Governor of the Reserve Bank of India (RBI). The meeting brought together key stakeholders, including senior officials from the Ministry of MSME, the Department of Financial Services, the Ministry of Finance, SIDBI, NABARD, major banks, credit guarantee institutions, and MSME associations.
In his keynote address, the Deputy Governor highlighted the critical role of MSMEs in India’s economic growth and reaffirmed the RBI’s commitment to enhancing institutional credit support. He outlined key initiatives such as the Unified Lending Interface (ULI), the Account Aggregator framework, and the Regulatory Sandbox, aimed at improving access to finance for MSMEs.
Recognizing the challenges faced by MSMEs, including financial literacy gaps, information asymmetry, and delayed payments, he stressed the importance of digital solutions, alternative credit assessment models, and wider adoption of the Trade Receivables Discounting System (TReDS). He also called for fair lending practices, greater transparency, and a supportive approach for MSMEs in financial distress. Additionally, he emphasized the role of MSME associations in bridging information gaps and helping businesses access credit more effectively.
The SAC reviewed the credit flow to MSMEs and discussed strategies to address the credit gap, improve cash flow-based lending, enhance digital credit linkage, accelerate TReDS adoption, expand the use of credit guarantee schemes, and support the revival of financially distressed MSMEs. The meeting reinforced the collective effort needed to strengthen financial support for MSMEs and drive their long-term growth.
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