The Reserve Bank of India (RBI) on April 05, 2016 said it will lay down a framework by September 2016 for accreditation of credit counselors who can act as facilitators for entrepreneurs to access the formal financial system with greater ease and flexibility.

Presenting the first Bi-monthly Monetary Policy Statement of 2016-17, the Central Bank said the credit counselors will also assist MSMEs in preparing project reports in a professional manner which would, in turn, help banks make more informed credit decisions. The RBI aims to refine and strengthen the banking structure and broaden and deepening financial markets.

In the Sixth Bi-Monthly Monetary Policy Statement for 2015-16 and the press release dated February 2, 2016 the Reserve Bank had highlighted the steps being taken with respect to the Government’s initiatives to promote ease of doing business for start-ups.

Reviewing the progress made, RBI said guidelines/clarifications have already been issued in areas such as online submission of Form A2 for outward remittances up to certain thresholds, issue of shares without cash payments and acceptance of payments by the Indian start-ups on behalf of their overseas subsidiaries.

In addition, guidelines in respect of deferred payment through escrow/ indemnity arrangement for transfer of shares, enabling investment by foreign venture capital investors (FVCIs) in start-ups and overseas investment operations for start-ups will be issued soon in consultation with the Government. Furthermore, the simplification of process for dealing with delayed reporting of FDI transactions and provisions for an enabling external commercial borrowing regime for start-ups are being examined by the Government and the Reserve Bank.

Source: The Economic Times