Tag: Reserve Bank of India (RBI)

Finance Ministry signals common ground with RBI on bad loans

A day after Reserve Bank of India (RBI) Governor Urjit Patel signalled a shift in the central bank’s stance towards tackling bad loans, Finance Secretary Ashok Lavasa on October 5, backed the new approach, saying state-run banks need to find practical ways out of the stagnation in loan growth. Pa…

RBI proposes norms for investment in overseas start-ups

The Reserve Bank of India (RBI) on September 30 came out with a draft framework to facilitate investment in overseas technology funds which deploy money in start-ups abroad. The RBI said such investments do not meet the eligibility norms for making overseas direct investments under the automatic …

Banks advised to push cash flow-based lending to MSMEs

In a bid to increase the institutional credit flow to micro, small and medium enterprises (MSMEs), banks can explore cash flow-based financing, as its funding to the sector is “not as per expectation“,  a senior government official has said. “Overall credit growth to the MSME se…

RBI formulating framework to ease flow of credit to MSMEs

CII-CRISIL Report recommends action points to increase MSME ratings  The Reserve Bank of India (RBI) is initiating a process for putting in place a framework for accreditation of credit counsellors who are expected to serve as facilitators and enablers for micro and small entrepreneurs. RBI Deput…

Need for tweaking laws and rules for preventing NPAs in MSMEs

The Micro, Small and Medium Enterprises (MSMEs) are the largest vendors for the Union and State governments in defence, aeronautics, electronics, safe drinking water equipment and services, medical and pharmaceuticals, solar equipment and servicing. The MSME Development Act (MSMED) also provided …