Reserve Bank Deputy Governor KC Chakrabarty expresses concerns about shrinking credit to MSMEs

BHOPAL: Reserve Bank Deputy Governor K C Chakrabarty today said MSMEs (micro, small and medium enterprises) play a major role in employment generation and economic growth and expressed concerns over declining credit to the sector in Madhya Pradesh.

"The MSMEs play important role in employment generation and contribution to economic growth," he said addressing a seminar on 'Issues and Challenges in Micro Small and Medium Enterprises Financing' here.

He emphasised the importance of timely and adequate credit to MSMEs, and expressed concern about the declining trend in MSME credit in Madhya Pradesh.

Small and medium entrepreneurs should not rely much on the government for financial needs and should take as bonus whatever the government offers them, he said. He also advised them not to depend on financial institutions much.

MSMEs face challenges such as lack of access to finance/ alternate funding sources, non-availability of collaterals and delayed realisation of receivables, he said.

Chakrabarty also underlined the need for early identification of sickness among MSMEs.

Central Bank of India's Chairman and Managing Director M V Tanksale was also present on the occasion.