FM Sitharaman urges SIDBI, Rural Regional Banks to ensure credit to MSMEs

New Delhi [India], August 23 (ANI): Union Finance Minister Nirmala Sitharaman reiterated the Government’s commitment to expand banking services for the benefit of small entrepreneurs.

She emphasized this during an interaction with MSME (Micro, Small, and Medium Enterprises) entrepreneurs from the marble and granite industry in Udaipur on Thursday.

The Minister noted that the recently announced Union Budget includes several key recommendations for the MSME sector, such as the expansion of SIDBI’s (Small Industries Development Bank of India) branch network.

SIDBI serves as the principal financial institution for the promotion, financing, and development of the MSME sector.

As part of the budget announcements and to gather feedback from the field, Sitharaman expressed her intent to visit several MSME clusters, with Udaipur, the illustrious land of Maharana Pratap, being the first in the series.

During her visit, the Finance Minister also visited SIDBI’s branch office in Udaipur, where she held discussions with existing customers on various aspects of credit needs and delivery. She also handed over sanction letters to MSME units.

Union Minister of Micro, Small, and Medium Enterprises Jitan Ram Manjhi, who also attended the event, affirmed the Government’s commitment to bringing the benefits of its schemes to the last mile, particularly focusing on micro enterprises.

He highlighted the rapid progress made by Credit Guarantee Scheme for Micro and Small Enterprises in last few years and the substantial enhancement done in its corpus through budgetary allocation.

Manjhi also mentioned that banks should more attention to supporting micro units and creating livelihood opportunities for the poor.

A Memorandum of Understanding (MoU) was also signed in the presence of the Finance Minister between SIDBI and the Udaipur Marble Association.

The MoU outlines a comprehensive plan to enhance the Association’s capabilities through both hard and soft interventions. Additionally, SIDBI will facilitate marketing efforts for Association members by organizing buyer-seller meetups to improve market access.

On the Udaipur visit Sitharaman also chaired a meeting to review the performance of nine Regional Rural Banks (RRBs) of the states of Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh and Rajasthan.

The minister asked the Regional rural banks (RRBs) to ensure easy credit to Micro, Small and Medium Enterprises (MSMEs). She asked the RRBs to become more customer-friendly and leverage their local connections to further improve performance.