RBI governor Malhotra urges MSMEs to formalize, digitize, and maintain credit discipline for resilience

The Reserve Bank of India Governor Sanjay Malhotra on Monday told small business units classified as micro, small and medium enterprises (MSMEs) to pursue formalisation, maintain credit discipline and adopt digital payments to build long-term resilience and competitiveness.

He emphasised that improving access to timely and adequate formal credit for MSMEs remains a key policy priority of the central bank, the RBI said in a press statement issued after the meeting.

The RBI top management held the meeting with select MSME units and representatives of MSME associations as part of the central bank's continued engagement with stakeholders. Deputy governors T Rabi Sankar, Swaminathan J and SC Murmu attended the meeting.


The governor was said to have underscored the pivotal role of the MSME sector in India’s economic landscape contributing significantly to GDP, exports and livelihoods. He also outlined several policy and regulatory measures undertaken for the sector by both the fiscal and monetary authorities.

During the interactive session, the MSME leaders raised concerns over operational challenges related to credit flow to the MSME sector.