August 21, 2019
RBI Notifies PHDCCI’s Suggestion on Priority Sector Lending by NBFCs to MSMEs
President, PHD Chamber of Commerce and Industry, Mr Rajeev Talwar has thanked the Governor, Reserve Bank of India and congratulated RBI for accepting the crucial recommendations of PHDCCI to meet the need of MSMEs for Priority Sector lending by NBFCs to MSMEs.
As a result of the meeting of PHDCCI with RBI Governor, in April 2019, the Reserve Bank of India has notified and approved banks’ lending to NBFCs for further on-lending to MSMEs under the Priority Sector Classification. Borrowers of the MSMEs segment will be able to avail credit up to Rupees 20 lakhs at concessional rate, said Mr Rajeev Talwar.
The move is expected to benefit thousands of MSMEs across the country. Costs of borrowing would come down and availability of credit would become easier, said Mr Talwar.
Only the PHDCCI had recommended this proposal to address the lack of adequate credit to MSMEs from the Banking System, in its representation to the RBI in April 2019, said Mr Rajeev Talwar.
Koteshwar Prasad Dobhal