Reserve Bank of India (RBI) Deputy Governor Usha Thorat today called upon the banks to review their loan policies towards Micro, Small & Medium Enterprises (MSMEs), adding that the government should provide better infrastructure for the sector.
Delivering the inaugural address at the National Policy Conference on 'Learning from Recession, Saving an Economy : Towards an MSME Agenda', Ms Thorat said ''the need to review the loan policies for the MSME sector was imperative as the loan policy for the sector is different from the loan policies for the large manufacturing sectors.'' She noted that all Boards had been asked to review the loan policy for the sector and put in place a thoroughly revised policy as one had to be sensitive to the needs of the MSME sector.
Ms Thorat also noted that there was a need for a greater participation from the banks in terms of non-credit services.
''Banks should look for convergence of credit & non-credit services, dissemination of information and ensure greater transparency,'' she added.