Mumbai: To streamline flow of credit to small enterprises and ensure that rightful company gets the credit, bankers and RBI Tuesday discussed introducing a transparent system for MSME loan proposals.
"We discussed to put a proposal tracking system in place, give acknowledgement and SMS facilities to an applicant," Punjab National Bank CMD and industry body Indian Banks Association's Chairman K R Kamath told reporters outside the RBI headquarters here.
As part of an earlier policy decision to look into the concerns surrounding the flow of credit to micro, small and medium enterprises (MSMEs), Deputy Governor K C Chakrabarty held a meeting with Chief Executives of banks this evening.
"Various ways, in which the borrowers or applicants will feel that there is a response from the banks and bankers, will be put in place for monitoring the entire flow" were discussed at the meeting, Kamath added.
Corporation Bank Chairman and Managing Director Ajai Kumar said to give a thrust to the credit flow to the key sector, there is a need to have transparent systems in place.
"How to create structures and processes so that there is more transparency and applications are properly tracked, no application is rejected without any reason and there is a proper monitoring system at the level of the bank, were among the issues which were deliberated upon," he said.
HDFC Bank Managing Director Aditya Puri said given the importance of the sector, bankers have agreed to take all necessary steps to strengthen the credit flow.
"We will double the effort to push growth and provide enough support to the MSME sector...They need more credit and help and bankers have agreed," he said.