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RBI convenes meet to address MSME issues in J&K

Ziraat Times News Network

Jammu: The Reserve Bank of India (RBI) held the 62nd Empowered Committee Meeting on Micro, Small, and Medium Enterprises (MSMEs) for the Union Territories of Jammu & Kashmir and Ladakh. The meeting, chaired by  Chandra Shekhar Azad, Regional Director of RBI for these UTs, aimed to address crucial challenges faced by MSMEs in the region, a statement issued to Ziraat Times said.

Key Issues Raised by Industry Representatives:

PHD Chamber of Commerce & Industry (PHDCCI) Jammu Chapter Chair, Rahul Sahai, highlighted the difficulty MSMEs face in obtaining loans due to low credit scores. He suggested that banks consider the actual situation of businesses and empower branch managers to make informed decisions.

Financial Literacy: Sahai emphasized the need for awareness programs on financial discipline, benefits of Udyam registration, Trade Receivables Discounting System (Treds) platforms, and startup funding schemes.

Solar Power Adoption: He proposed a special loan product with easy EMIs to encourage non-subsidized commercial and industrial establishments to install solar power plants.

Improved Grievance Redressal: Sahai called for increased visibility of the RBI Ombudsman department to facilitate MSME complaints against banks.

Non-Performing Assets (NPAs): He suggested committee discussions involving industry associations before declaring an MSME an NPA.

Inter-bank Account Transfer: Sahai advocated for a streamlined process for MSMEs to switch banks and explore competitive products.

Reduction of Bank Charges: He requested a review of bank charges on unutilized credit limits, which burden MSMEs.

Udyam Registration: Linking Udyam registration with GST returns was proposed to increase enrollment.

Response from RBI:

Chander Shekhar Azad acknowledged the concerns raised and assured the attendees that the RBI would work towards fostering a more conducive environment for MSME growth in the region. He commended the efforts of PHDCCI in organizing programs to support entrepreneurs.

Meeting Outcome:

The meeting concluded with a commitment from both RBI and industry representatives to address the raised issues and support MSME development in Jammu & Kashmir and Ladakh.

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