We will be able to run Vande Bharat train through Mangaluru route: Vaishnaw (See 'Corp Brief') President of India to confer AI Certificates (See 'Corp Brief') Negotiable Instruments Act, 1881 - Summoning order quashed where complaint lacks specific averments regarding petitioner's direct involvement in issuance of dishonored cheques: HC (See 'Legal Desk') DFS Secy highlights key initiatives for deepening digitisation of tribunals (See 'Corp Brief') Framework for professionalized Sports Governance being constructed (See 'Corp Brief') Negotiable Instruments Act, 1881 - merely being Director in company is per se not enough to establish vicarious liability under Section 141 of the Act, without clear allegations of role in company's affairs: HC (See 'Legal Desk') NHAI signs MoU with National Test House to Strengthen Quality Assurance in Highway Projects (See 'Corp Brief') PMLA - Fact that property is retransferred to the beneficial owner after completion of purpose for which it was given to benamidar, provisions of PBPT Act are attracted and it does not exonerate any party to benami transaction: SAFEMA (See 'Legal Desk') DoT extends Pro-Tem Security Certification Scheme for two years from 01-01-2026 (See 'Corp Brief') PMLA - Even if predicate offences were not directly linked to appellants, ingredients of money laundering under PMLA could still apply as per settled legal precedent: SAFEMA Tribunal (See 'Legal Desk') PMLA - Attachments of even bank balances can be sustained if enforcement agency satisfies statutory scheme and evidentiary requirements: SAFEMA Tribunal (See 'Legal Desk') Joshi releases Indian Standard for Electric Agricultural Tractor (See 'Corp Brief') IPR - Generic or commonly descriptive word can never become trade marks on their own as they never acquire distinctiveness or a secondary meaning: HC (See 'Legal Desk') NTH signs MoU with DRDO's DMSRDE for research, testing and training collaboration (See 'Corp Brief') IPR - Kohinoor's trademark registrations in Delhi and marketing agreement executed between parties in Delhi were sufficient to vest territorial jurisdiction in Court: HC (See 'Legal Desk') Gypsum Board Testing and Micro-Characterisation Laboratories Inaugurated (See 'Corp Brief') IBC - Paramount consideration should be interest of homebuyers who are entitled to allotment and possession of completed units: HC (See 'Legal Desk') Govt notifies Colliery Control (Amendment) Rules, 2025 (See 'Corp Brief') IPR - If marks/trade dress of parties, are similar, and areas of operation/business are same, and target consumers are also similar, there is complete likelihood that deception and confusion will occur with consumers: HC (See 'Legal Desk') NIFTEM-K signs MoU with Ministry of Minority Affairs to implement PM Vikas Scheme (See 'Corp Brief') A&C - Developer's failure to establish escrow account and its prolonged delay in project completion demonstrated financial indiscipline: HC (See 'Legal Desk') CSIR Labs driving Atmanirbhar Bharat through indigenous technologies: MoS (See 'Corp Brief') A&C - DMRC is not in violation of obligations under Concession Agreement, if DMRC had co-operated with PDL and sub-licensee and non-completion of project was because of failure of PDL: HC (See 'Legal Desk') India now sets Global Benchmarks in Space, Defence, and Innovation: MoS (See 'Corp Brief') PMLA - Provisional attachments under Section 5 of PMLA can be initiated without chargesheet under Section 173 of CrPC, based on sufficient material: HC (See 'Legal Desk')

Print

Rs 25 Lakh loans, decision in 14 days - Govt moves to enhance credit access for MSMEs

Published: Mar 12, 2025

By TIOLCorplaws News Service

NEW DELHI, MAR 12, 2025: THE Reserve Bank of India (RBI), as a regulator, provides an enabling framework for Regulated Entities (REs) to cater to the financing needs of various sectors of the economy within the prudential boundaries. Further, credit related matters of REs are largely deregulated and the same are governed by the Board approved loan policies of the REs framed under the ambit of relevant regulatory and statutory requirements and terms and conditions of the loan agreement between the borrower and the RE. Banks have been advised to furnish the MSME borrowers with an indicative checklist of documents required for processing the loan application at the time of applying for the loan. For loans up to Rs.25 lakh to units in the Micro and Small Enterprises (MSE) borrowers, banks are advised that the timelines for credit decisions shall not be more than 14 working days. Various measures have been taken for increasing access to credit and finance for MSMEs.

These include:

- Specific targets for lending to MSME sector have been prescribed in Priority Sector guidelines dated 4.9.2020.

- SCBs have been mandated not to accept collateral security in the case of loans up to Rs.10 lakh extended to units in the MSE sector.

- Computation of working capital requirements of MSE units to be minimum 20% of the projected annual turnover for borrowal limits up to Rs.5 crore.

- Trade Receivables Discounting System (TReDS) has been operationalized to address the problem of delayed payments to MSMEs.

- Banks have been advised to link interest rates of loans extended to MSMEs to an external benchmark.

- RBI's Account Aggregator (AA) framework and proposed Third Cohort under Regulatory Sandbox (RS) for MSME Lending is expected to spur innovations that can fill the lending gap for MSMEs through the use of technology and data analytics.

- RBI's Unified Lending Interface (ULI) will make credit more accessible to underserved populations.

- GST Sahay App of SIDBI facilitates 'on tap' invoice-based (cash flow based) small value credit to micro enterprises as a paperless journey.

- Udyam Assist Platform (UAP) to register Informal Micro Enterprises (IMEs) i.e. micro enterprises not registered under the GST regime.

- Under Pradhan Mantri Mudra Yojna (PMMY), Government has taken various steps towards effective implementation of the Scheme. These include publicity campaigns, simplification of application form, Credit Guarantee Scheme, nomination of Mudra Nodal Officer, frequent reviews at various levels to monitor the achievement against allocated target, etc. Online platforms like Jansamarth portal provide a quick and efficient way to get loans for individuals and businesses, with approvals based on digital evaluation of the applicant's data.

- PSBLoansin59minutes enables MSMEs to obtain In-principle approval of loans from lenders onboarded on the platform.

- SAMADHAAN Portal launched for monitoring of outstanding dues to the MSEs from the buyers of goods and services xiii. The Government of India has launched various Credit Guarantee schemes for the benefit of MSMEs.

- New Credit Assessment Model based on the scoring of digital footprints of MSMEs developed by PSBs will leverage the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for MSME Loan appraisal using objective decisioning for all loan applications and model-based limit assessment for MSME borrowers.

This information was given by Minister of State in the Ministry of Finance, Pankaj Chaudhary in a written reply to a question in Rajya Sabha yesterday.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.