Mumbai: The Reserve Bank of India’s newly constituted committee for MSME development has called for public suggestions on a list of seven underlying issues faced by the sector ranging from definition of MSME to infrastructural gaps and even the credit rating mechanisms in the industry. 

“The Committee is undertaking a comprehensive review of the sector to identify causes and propose long term solutions for its development. The Committee has, therefore, decided to invite suggestions from the public at large…” RBI said in a press release. 

The MSME development committee was constituted in January this year to understand ‘the structural bottlenecks and factors affecting the performance of the MSME sector’ and is headed by former SEBI chairman U K Sinha. 

Post defaults by IL&FS in September, the Small and Medium Enterprises sector has been facing troubles raising working capital after the banks credit cost to lenders operating in these areas increased. The government and regulators are trying to formalise the credit procurement infrastructure in the largely unorganised and underbanked sector. 

The RBI committee has asked for public comments on issues such as working efficiencies of District Industry Centres (DIC), infrastructural gaps affecting development of the industry, entrepreneurial support structure, ways to improve TReDs interface and ways to better credit rating mechanisms. 

People can also send other suggestions to RBI concerning specific issues in the sector by March 28, 2019, RBI said. 

Published On : 18-03-2019

Source : Economic Times