Banks urged to lend more under credit guarantee scheme

Credit flow to Micro, Small and Medium Enterprises (MSMEs) in the State grew by 25 per cent in 2009-2010, according to the Regional Director of the Reserve Bank of India, K.R. Ananda.

Mr. Ananda told presspersons here on Wednesday that the RBI formed the State-level empowered committee for MSMEs three years ago. The committee met every quarter and reviewed the credit flow to this sector. The RBI also urged the banks to lend more under the credit guarantee scheme. “We have made it mandatory for banks not to seek collateral from MSMEs up to Rs. 10 lakh loan,” he said.

He said that one of the concerns of the bank was that more number of people were becoming victims of fictitious mails that offered “cheap funds”. The “fraudsters” were creating an impression that some funds were parked with the RBI and asked the public to pay an amount to get it.

The RBI was educating the public not to fall prey to the propagation (dubious offers). It proposed to organise awareness camps in all the districts in the State. During the last one year, the bank had reported 25 to 30 cases to the cyber crime wing of the police.

Keywords: BanksCredit flowMSME

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