RBI’s financial inclusion report focuses on MSMEs
The Reserve Bank of India (RBI) has released Mohanty panel Report on medium -term path inclusion. Its aim is to deliver the financial services at affordable costs to the weak and low income segment of the society.
However, the report also focuses the Micro small and medium enterprises (MSMEs).
The report suggested that there should be a system of unique identification for all MSME borrowers and sharing of such information with credit bureaus.
Establishing a system of professional credit intermediaries/advisors for MSMEs to help both the sector banks in credit assessment, the report said.
The report also suggested to further step up financing of the MSE Sector a framework for movable collateral registry may be introduced.
The panel mentioned to encourage multiple guarantee agencies to provide credit guarantees in niche areas for micro and small enterprises (MSEs), and explore possibilities for counter guarantee and re-insurance.
The key components of this inclusion policy is to improve credit system for the underprivileged and it focuses on poor agricultural households to ensure perceptible shift of credit demand from informal to formal sector.