RBI organizes town hall meeting on MSMEs

Kohima, 8 March (MTNews): A Town Hall meeting on MSMEs was organized by the Reserve Bank of India, Kohima, at Heirloom Naga Centre on March 8, 2024.

In his inaugural address, GM & O-i-C, RBI Kohima, Paresh Chauhan, highlighted the conditions of local entrepreneurs, emphasizing ways to enhance their formal credit linkage in the district. He emphasized the crucial role banks can play in promoting Financial Inclusion and discussed various schemes available in the MSME sector.

Chauhan advised bankers to conduct responsible due diligence before rejecting any loan application and cautioned against under-financing projects, as it could lead to an increase in Non-Performing Assets (NPA). RBI officers conducted a session on the Digital Payment System and presented findings from a survey among entrepreneurs and bankers in Dimapur district, addressing issues related to credit linkages for local MSMEs and lack of awareness about MSME schemes.

Nine MSME sanction letters were collectively distributed by branches of SBI, Axis Bank, and Canara Bank.

During the meeting, A. Jamir of BAN highlighted the challenge of access to capital in the state and stressed the need to bridge the gap between capital requirements and credit sanction. Abenla of DIC emphasized the role of women as the backbone of the family and society, expressing a desire for women to be provided with loan facilities to improve financial stability. She encouraged a combination of hard work and smart work for success.

Officials from SBI and Bank of Baroda discussed various types of loans, clarifying that the primary function of banks is to provide loans. They also addressed the misconception among entrepreneurs that Government Sponsored Schemes are grants and need not be repaid.

Aku Zeliang from Urra Design shared his success story, mentioning plans for expansion outside India.

The Reserve Bank of India has been organizing Town Hall Meetings on MSMEs to create awareness of banking facilities and RBI guidelines among entrepreneurs, facilitate direct interactions between bankers and entrepreneurs, and connect entrepreneurs to the formal banking system.