: PM urges banks to push loans to MSMEs, NBFCs & microfinance institution #FinanceIndia #StockMarketNEWS PM urges banks to push loans to MSMEs, NBFCs & micro-finance institution New Delhi, July 30 (KNN) Prime

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Posted in: #FinanceIndia #StockMarketNEWS

PM urges banks to push loans to MSMEs, NBFCs & microfinance institution #FinanceIndia #StockMarketNEWS
PM urges banks to push loans to MSMEs, NBFCs & micro-finance institution New Delhi, July 30 (KNN) Prime Minister Narendra Modi has urged bankers to push loans to Micro, Small and Medium Enterprises (MSMEs), farmers, micro-finance institutions and Non-Banking Finance Companies (NBFCs).

During the meet with stakeholders from Banks and NBFCs on Wednesday, Modi reviewed the progress of schemes like emergency credit line for MSME, additional KCC cards, liquidity window for NBFC and MFI.

While it was noted that significant progress has been made in most schemes, banks need to be proactive and actively engage with the intended beneficiaries to ensure that the credit support reaches them in a timely manner during this period of crisis, an official statement said.

Apart from these, the crucial role of the financial and banking system of supporting growth was discussed and it was noted that the small entrepreneurs, SHGs, farmers should be motivated to use institutional credit to meet their credit needs and grow.

Each bank needs to introspect and take a relook at its practices to ensure stable credit growth. Banks should not treat all proposals with the same yardstick and need to distinguish and identify bankable proposals and to ensure that they get access to funding on their merit and don’t suffer in the name of past NPAs, the statement further read.

The Prime Minister assured bank that government is firmly behind the banking system adding, the government is ready to take any steps necessary to support it and promote its growth.

Modi asked banks to adopt fintech like centralised data platforms, digital documentation and collaborative use of information to move towards digital acquisition of customers.

This will help increase credit penetration, increase ease for customers, lower costs for banks and also reduce frauds, he added.