RBI Governor Sanjay Malhotra Reaffirms Priority on MSME Credit Access

Formal Credit Flow to MSMEs Remains Key Policy Focus​

Mumbai, February 16: Reserve Bank of India Governor Sanjay Malhotra on Monday reiterated that improving access to timely and adequate formal credit for micro, small and medium enterprises remains a core policy priority of the central bank.

The statement came after the governor held a meeting with select MSMEs and representatives of MSME associations as part of the Reserve Bank’s ongoing engagement with stakeholders.

MSMEs’ Contribution to India’s Economic Landscape Highlighted​

According to an official statement, Malhotra underlined the critical role played by the MSME sector in India’s economic framework. He noted that MSMEs make a significant contribution to the country’s gross domestic product, exports, and employment generation.

He emphasized that strengthening credit access for the sector continues to be a central policy objective of the Reserve Bank.

Policy and Regulatory Measures Discussed​

During the interaction, the governor outlined several policy and regulatory initiatives undertaken by the central government and the central bank to support the MSME ecosystem.

He encouraged enterprises to pursue greater formalization, maintain credit discipline, and adopt digital payment systems. These steps, he said, would help MSMEs enhance long term resilience and improve competitiveness.

Industry Feedback on Credit Flow Challenges​

The meeting also featured an interactive session in which participants shared feedback and suggestions on policy issues and operational challenges affecting credit flow to the MSME sector.

Deputy Governors T Rabi Sankar, Swaminathan J, and SC Murmu were also present at the meeting.

The engagement reflects the central bank’s continued efforts to strengthen dialogue with the MSME community while reinforcing its policy focus on improving formal credit access.