Adopt supportive, empathetic approach towards MSMEs: RBI dy guv to lenders

Reserve Bank Deputy Governor Swaminathan J has asked financial institutions to adopt a more sensitive and empathetic approach towards MSMEs, and deploy supportive measures like restructuring options for loans, to support the sector which plays a key role in the economy.

In a speech at the Annual Day of the Foreign Exchange Dealers Association of India (FEDAI) here, the deputy governor said MSMEs face challenges like access to affordable finance, delayed payments, infrastructure bottlenecks, and requirements of compliance, among others.

The journey of India's economic transformation cannot be complete without the robust development of the MSME sector.

"MSMEs are not just the backbone of our economy, they are the engines of growth, innovation, and employment," he said at the event held on Wednesday.

However, for these enterprises to truly thrive and scale up, the financial sector must step up with innovative solutions, sensitivity, and a forward-looking approach, Swaminathan said.

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