(MENAFN- KNN India)
New Delhi, Aug 31 (KNN)
Credit to Micro, Small, and Medium Enterprises (MSMEs) by scheduled commercial banks under the priority sector lending framework grew by 15 per cent year-on-year in July, reaching Rs 25.10 lakh crore, according to the Reserve bank of India (RBI).
This is a significant increase from Rs 21.82 lakh crore in the same period last year. The priority sector credit to MSMEs accounted for 14.9 per cent of India's non-food credit, which stood at Rs 167 lakh crore in July, down slightly
from 15.9
per cent in July last year.
Credit to Micro and Small Enterprises (MSEs) rose by 14.3 per cent, reaching Rs 19.9 lakh crore in July, up from Rs 17.4 lakh crore a year earlier.
Credit to medium-sized enterprises grew by 17.9 per cent, jumping to Rs 5.11 lakh crore from Rs 4.34 lakh crore in the corresponding month last year.
To further support MSMEs, the government is considering establishing a dedicated bank for direct lending, as reported in June.
In addition, the RBI plans to launch a Unified Lending Interface (ULI) platform to streamline credit access.
This new digital platform is expected to address the unmet demand for credit, particularly for MSME and agricultural sectors.
The ULI will facilitate a seamless and consent-based flow of digital information from multiple data providers to lenders, reducing the time needed for credit appraisal, especially for smaller and rural borrowers, according to the RBI Governor.
These initiatives underscore the government's and RBI's commitment to enhancing financial inclusion and supporting MSMEs, which are vital to India's economic growth.
As both the government and financial institutions continue to prioritise this sector, MSMEs are poised to benefit from improved access to credit, aiding their growth and contribution to the economy.
The measures aim to strengthen the MSME sector, which plays a crucial role in job creation and economic stability, ensuring continued growth and resilience in the face of evolving challenges.
(KNN Bureau)
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