PSBs Must Help Small Businesses Says Finance Minister

As per the Finance Minister, the Public Sector Banks (PSBs) must consider special and revised packages for the small and medium enterprises, also known as SMEs, especially for those that are under financial stress.

As per the government, these enterprises are critical to job creation and must be given seamless access to the finance and market. The banks are requested to look into the diversified options like restructuring the loans so that genuine business opportunity is never lost.

PSBs Must Help Small Businesses Says Finance Minister

The ministry is also planning to create special units in order to accelerate the process of offering credit support to the enterprises where the stress is caused due to the external factors. In fact, State Bank of India has already accepted the proposal and has initiated the process of setting up a rehabilitation unit to support such SMEs.

The government is also putting their endeavors in bringing all new projects in the micro, small and medium enterprises also termed as MSME sector onto its Udaymitra portal. This will contribute to the seamless transaction of the finance.

The banks will also try to get a hold of the medium and small enterprises to finalize the project template. After the accomplishment of the said activity, the projects will be available online so other lenders can also participate in either the lending process or offer competitive rates.

Arun Jaitley, Finance Minister, had previously expressed his concern regarding the accessibility of MSMEs to the international finance or bond market. As per Jaitley, this sector creates huge job opportunities, boosting the economy significantly. Hence, it must be given proper scopes to extend the arena that will boost the market in a great way.

The sector-specific Micro Units Development and Refinance Agency (Mudra) products like Mudra manufacturing programs and Mudra textile are drawn up to give a boost to credit growth.