PR No – 145
28th July, 2025
New Delhi
PHDCCI Presents Key Recommendations to Hon’ble RBI Governor to Strengthen MSME Financial Ecosystem
In a meeting held with the Hon’ble Governor of the Reserve Bank of India, the PHD Chamber of Commerce and Industry (PHDCCI) put forth a comprehensive set of policy recommendations aimed at enhancing credit access, regulatory support, and financial efficiency for India’s Micro, Small, and Medium Enterprises (MSMEs).
Recognizing the critical role of MSMEs in driving India’s economic growth, PHDCCI’s submission included eight targeted action points. The Chamber appreciated the Union Government’s move to expand credit guarantee schemes and urged the RBI to ensure effective implementation. To that end, it was suggested that RBI should create designated helpdesks at field offices level to support MSMEs facing credit access challenges.
A key recommendation included streamlining and rolling out the proposed Micro Credit Facility Cards, announced in the Union Budget, with a ₹5 lakh limit each. PHDCCI proposed renaming them to distinguish from consumer credit cards, standardizing issuance procedures, ensuring interest rate caps, and launching a centralized portal for monitoring card applications.
PHDCCI also stressed the need to digitize and standardize banking documentation across institutions to reduce physical paperwork and promote transparency.
In a push for inclusive financing, PHDCCI advocated for removing the current ₹20 lakh cap on Priority Sector Lending classification for credit through NBFCs, requesting an increase to at least ₹1 crore to support working capital needs in line with revised MSME definitions.
Among others following critical points were discussed:
- Extension and expansion of the Interest Equalization Schemeto cover service exporters, aligning with India’s ambitious $1 trillion export target.
- Faster clearance of deposited cheques, suggesting a 24–48 hour credit window to ease cash flow for MSMEs.
- Regulatory intervention against unfair practices by credit rating agencies, particularly those demanding advance fees and NOCs for rating withdrawal.
- Revision of NPA classification norms, recommending an extension of the overdue threshold from 90 to 180 days to reflect realistic MSME working capital cycles.
PHDCCI remains committed to constructive dialogue with the RBI and all stakeholders to ensure that MSMEs are empowered to scale and be competitive globally to achieve the Atmanirbhar Bharat goal by 2047.