November 19, 2009 6:49 PM

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RBI & Finance Ministry to soon issue directive to step up credit to MSMEs

The Finance Ministry and the Reserve Bank will soon issue directions to the banks to step up credit for micro, small and medium enterprises (MSMEs) to make them more effecient.A task force formed by Prime Minister Manmohan Singh on Thursday discussed steps to enhance credit to MSMEs, which contribute 45 per cent to the country's industrial production.The secretary in the MSME ministry, Mr Dinesh Rai said in New Delhi that the meeting of the group, headed by Prime Minister's Principal Secretary T K A Nair, also considered ways to infuse venture and equity capital into these units. The MSMEs, which bore the brunt of the economic slowdown have been seeking concessional credit as also equity infusion. The task force, constituted in August, also comprises Finance Secretary Ashok Chawla and Labour Secretary P C Chaturvedi, had formed several expert sub-groups to look into the specific problems faced by the sector.The group also discussed reports on credit and Exit policy on sick enterprises.

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