Finance Minister Nirmala Sitharaman on June 9 asked public sector banks (PSBs) to be proactive about lending to small, medium and micro enterprises (MSMEs). Sitharaman made the statement on video while reviewing the progress of the Rs 3 lakh crore Emergency Credit Guarantee Scheme for MSMEs.
She asked banks to “reduce paperwork and simplify formalities,” to assist MSMEs better, state broadcaster Prasar Bharati reported.“PSBs to continue focus on sanction & reaching out to eligible MSMEs. To also target meeting credit needs of other businesses,” Sitharaman said.
As of June 8, under the Emergency Credit Guarantee Scheme for MSMEs, banks have disbursed Rs 1,109 crore to 17 MSMEs hubs in 12 states.
The scheme is part of the Rs 20 lakh crore fiscal stimulus package to help the economy battling the coronavirus pandemic and resultant lockdown. It provides a 100 per cent guarantee for additional funding and was approved by the Cabinet on May 21. The Centre has allocated four tranches of Rs 41,600 crore each under the scheme for the current fiscal and coming three fiscals.
