CII holds session on MSME finance
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Visakhapatnam: RBI’s Trade Receivables Discounting System (TReDS) has been helping out not only the big businesses but as well the MSMEs said Dr. Rajendra Sinha, Founder, MSMEadvisor.com at CII seminar on MSME financing here on Wednesday.
Speaking on MSMEs financing with the theme of enhancing their competitiveness through bridging the financial gap, he mentioned the difficulties of the Indian MSMEs access to finance.He said the RBI-appointed UK Sinha Expert Committee on MSMEs cited three causes for the big credit gap in its 2019 report.
The committee recommended that the banks should develop customised products to assess the financing requirements based on expected cash flows. Also, banks need to build their ability to capture cash flows of MSME borrowers on a regular basis, for which tie-ups with Industry majors/ aggregators/online platforms to be done by the banks.
