MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a)to(d): In terms of the recommendations of the Prime Minister`s Task Force on Micro,
Small and Medium Enterprises (MSMEs), Reserve Bank of India (RBI) has advised all banks as under;
i. The allocation of 60% of the MSE advances to the micro enterprises is to be achieved
in stages viz. 50% in the year 2010-11, 55% in the year 2011-12 and 60% in the year 2012-13
and
ii. Achieve a 20 per cent year-on-year growth in credit to micro and small
enterprises to ensure enhanced credit flow;
iii. Achieve a 10% annual growth in number of micro enterprise accounts.
The details of bank wise achievements of the above targets as on last reporting Friday
of March are as under:
(Amount Rs. in crore)
Year Public Private Foreign Banks All Scheduled Sector Banks Sector Banks Commercial banks
Last Amt. O/s Amt. O/s Amt O/s Amt O/s
Friday of
March 2009 191408.32 46656.33 18063.42 256128.07
March 2010# 276318.97 64824.72 21147.05 362290.74
March 2011 478575.73 136423.94 21597.33 636597
# Retail trade included in service sector,
>
# included Medium Enterprises Sector.
MSE credit is reckoned for Priority Sector Lending. Any shortfall in achieving the Priority
Sector targets is to be deposited by banks to the RIDF / SIDBI/NHB. SIDBI in turn utilises
the fund thus deposited for refinancing MSME advances.
To increase credit flow to the MSE Sector various measures have been taken such as issuing
prudential guidelines on restructuring of advances, to introduce Base Rate System, Formulation
of `Banking Code for MSE Customers, Focus on Clusters, One Time Settlement scheme for recovery
of non-performing loans for the MSE sector etc. have been taken by RBI so that flow of credit
to the MSE Sector could be increased.
