Revamping Credit Access: PHDCCI's Vision for MSME Growth

The PHD Chamber of Commerce and Industry met RBI Governor to propose reforms enhancing financial support for MSMEs. Recommendations include streamlined credit access, digitized banking, and regulatory measures. PHDCCI aims for improved credit facilities, fairer credit rating practices, and revised NPA norms to bolster MSME growth in India.

In a significant move to support India's Micro, Small, and Medium Enterprises (MSMEs), an industry delegation from PHD Chamber of Commerce and Industry (PHDCCI) met with RBI Governor Sanjay Malhotra to present a series of policy reform proposals.

The meeting, which took place at the RBI headquarters in Mumbai, saw the chamber advocating for enhanced credit access and regulatory support. Among the key suggestions was the introduction of help desks at RBI field offices to assist MSMEs with credit challenges.

PHDCCI highlighted the need to digitize banking documentation and proposed changes to the Micro Credit Facility Cards to improve financial efficiency. They also called for broader Priority Sector Lending definitions and faster cheque clearance processes to enhance cash flow for MSMEs.

(With inputs from agencies.)