RBI: 'Adopt a more sympathetic approach towards MSMEs', Deputy Governor Swaminathan advised lenders

Reserve Bank Deputy Governor Swaminathan J has asked financial institutions to adopt a more sensitive and sympathetic approach towards the MSMEs. The Deputy Governor has asked to adopt support measures, including provision for restructuring options of loans for MSMEs with the bouquet of facilities so that this important sector, which plays an important role in the economy, is supported.

Speaking at the annual day of the Foreign Exchange Dealers Association of India (FEDAI), the deputy governor said MSMEs face challenges such as access to affordable credit, payment delays, infrastructure bottlenecks, and compliance requirements. The central bank deputy governor said India's economic transformation journey cannot be complete without strong growth of the MSME sector.

"MSMEs are not only the backbone of our economy, they are the engines of growth, innovation, and employment," he said at the event on Wednesday. "However, for these enterprises to truly thrive and grow, the financial sector must come up with new solutions, sensitivity, and a visionary approach," Swaminathan said.

"It is not just about providing credit; it is about enabling these enterprises to compete globally, boost exports, and contribute to the country's goal of becoming a developed economy by 2047," he said.