Banks asked to appoint official for MSMEs

The Ministry of Finance has instructed banks to appoint a general manager-level official to solve the problems faced by micro and medium enterprises. The move intends to boost the MSME sector, which contributes significantly towards employment generation and exports. The nodal GM may amass information related to details of MSMEs that have taken loans from the bank, NPAs and restructuring/resolution done as per RBI circular dated January 1, 2019. Finance Minister Smt Nirmala Sitharaman, has asked officials to concentrate on inclusive growth with an aim of achieving the target of US$ 5 trillion economy by 2024.

Previously, a string of measures were announced with a view to provide access to market, technology upgradation, ease of doing business and provision of social security for employees of MSMEs. The sector contributes around 45% in India’s exports, about 25% to the GDP from service activities and over 33% to the manufacturing production.