Banks should double the MSMEs Loans from Rs 50,000 Cr to Rs 1 Lakh Cr in 2015-16: Arun Jaitley

In a high level interaction with country's top bankers, Union Finance Minister, Mr Arun Jaitley,  made a clear recommendation that 2015-16 should see a doubling of loans to the small business sector from Rs. 50,000 crore (during 2014-15) to Rs. 1 lakh crore.

The Finance Minister met the top bankers of the country including both – the private as well as public sector banks to review the performance of the banks and discuss a host of issues.

Mr Jaitley also noted the progress and suggested that since the small & micro business sector has diverse needs, credit products should be customised to suit their requirements so that the unfunded are effectively funded.

The Finance Minister dwelt at length on MUDRA Bank and the Pradhan Mantri Mudra Yojana (PMMY).

Officials from DFS detailed and updated the Finance Minister on all the subsequent steps taken in this regard following the setting up of MUDRA Bank.

Jaitley suggested that he himself would like to sort-out Issues Relating to Major Projects Stalled Purely Due to Financial Reasons and Discuss with the Concerned Banks, State Governments and other Ministries.

Jaitley clearly directed the Banks/FIs that grievance redressal ought to be a serious pursuit and constructive effort should be made towards disposal of pending grievances within the banks, without allowing them to escalate to higher Government levels.