GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES 

RAJYA SABHA
UNSTARRED QUESTION NO. 3140
ANSWERED ON APRIL 23, 2013 / VAISAKHA 3, 1935 (SAKA) 

QUESTION
Credit Advisory Centres for Micro, Small and Medium Enterprises (MSMEs) 

3140: SHRI RAJEEV CHANDRASEKHAR:
SHRI RAJKUMAR DHOOT: 

Will the Minister of FINANCE be pleased to state:

(a)   whether Credit Advisory Centres (CACs) have been established for entrepreneurs of Micro, Small and Medium Enterprises (MSMEs) in the country;

(b)   if so, the details thereof along with the main functions of such CACs; and

(c)    the number of CACs established so far/ likely to be established in the near future in Karnataka and Maharashtra?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

(a) & (b): With a view to mitigate the various challenges faced by MSMEs in obtaining credit and extending Financial literacy, Small Industries Development Bank of India (SIDBI) has set up Credit Advisory Centres (CACs). The main functions of the CACs are:

  • Guide new/ existing entrepreneurs regarding availability of schemes of SIDBI/commercial banks;
  • inform MSMEs of Government subsidies /benefits;
  • provide borrowers with debt counseling;
  • facilitate response to queries raised by banks ;
  • Support could be extended in the area of rehabilitation of viable units;
  • Capacity building of bankers to appreciate the needs of MSMEs etc.

(c): As on March 01, 2013, 306 CACs have been established. The number of CACs in Karnataka has been increased from 5 as on December 31, 2012 to 13 as on March 01, 2013. The number of CACs in Maharashtra has been increased from 23 as on December 31, 2012 to 36 as on March 01, 2013.