This meeting was organized by the Reserve Bank of India in association with the Chamber of Small Industry Associations (COSIA) and the Thane Small Scale Industries Association (TSSIA) on 22.01.2024, to understand the challenges faced by MSME borrowers in loan processing when applying for formal credit from Scheduled Commercial Banks.
CA Nandan Khambete, TSSIA Executive Committee Member, welcomed the participants and introduced the RBI officials. Mr. Sandeep Parikh, President of COSIA, delivered the opening address wherein he outlined the various issues encountered by MSMEs in banking and securing bank credit. Mrs. Sujata Soparkar, President of TSSIA, felicitated the RBI team.
The RBI team comprised Ms. Uden Sherpa (DGM), Mr. Baljinder Singh (AGM), and Ms. Saranya Panicker (Manager).
In addition to discussing general issues, the RBI team sought input from MSMEs on the following:
- Whether MSEs are informed about the required documentation and timelines for credit decisions at the time of applying for a loan.
- If borrowers receive an acknowledgement number for their loan applications and whether SMS or other notifications are provided indicating the status of the proposal.
- The average turnaround time taken by banks for processing loan applications from the participating MSMEs.
- Specific challenges faced by MSMEs in accessing formal credit.
- Whether banks communicate the reasons for rejecting loan applications.
Various MSME representatives participated in the meeting and shared their experiences and concerns regarding banking and obtaining bank credit.