Rajeev Chandrasekhar's official website - Member of Parliament

Government of India

Ministry of Finance

Rajya Sabha

Question No. 2459

Answered on 10th December 2019

Analysis of Credit Issue with MSMEs



Will the Minister of FINANCE be pleased to state:

(a)Whether Government has recently issued any guidelines to public sector banks to analyses credit issues with regard to Micro, small and Medium Enterprises (MSMEs);

(b)If so, the details thereof; and

(c)The credit growth to MSMEs in the last three quarters?



Minister of State in the Ministry of Finance

(Shri Anurag Singh Thakur)


(a)to (b) Government had launched a “Support and Outreach Programme” for Micro, Small and Medium Enterprises (MSMEs) on 2nd November, 2018. The Programme, inter-alia, included initiatives for MSMEs on access to credit, access to market, technology upgradation, ease of doing business, social security for MSME sector employees etc. Further, a Customer Outreach Initiative was conducted in October, 2019 and November, 2019 where loans amounting to Rs. 37,210 crore in October and Rs. 35,775 crore in November were disbursed to MSMEs. Government has also advised Public Sector Banks (PSBs) to designate a Chief General Manager (CGM) / General Manager (GM) level officer to do in-depth analysis of credit issues faced by MSMEs under the supervision of Executive Director (ED) in charge of MSME financing of the bank. Besides, a number of steps have been taken by the Government to enable proper analysis of credit issues of MSME sector, including, inter-alia, the following:


(i) nomination of Nodal Officers at GM level by all PSBs and
(ii) periodic monitoring and analysis of performance of the PSBs through video conferencing along with reporting in specified formats.

(c)As per data reported by Reserve Bank of India (RBI), outstanding credit to MSMEs by Scheduled Commercial Banks (SCBs) as of March, 2019, June, 2019, and September, 2019 was Rs 14.97 lakh crore, Rs 14.84 lakh crore and Rs 15.15 lakh crore respectively.