The Reserve Bank of India (RBI) on February 6 announced a series of measures aimed at “deepening financial inclusion, improving credit flow to small businesses, and strengthening financing channels for the real estate sector".
Speaking at the post-Monetary Policy Committee (MPC) meeting briefing, RBI governor Sanjay Malhotra said the central bank has undertaken a comprehensive review of key financial inclusion frameworks, including the Lead Bank Scheme (LBS), Kisan Credit Card (KCC) Scheme, and the Business Correspondent (BC) model.
“As part of this exercise, draft revised guidelines for these schemes will be issued shortly. We will also launch a unified reporting portal for better management and monitoring of Lead Bank Scheme data,” Malhotra said.
In a significant move to ease credit access for small businesses, the RBI proposes to raise the limit for collateral-free loans to MSMEs from Rs 10 lakh to Rs 20 lakh, a step expected to improve liquidity support for micro and small enterprises.
To strengthen financing avenues for the real estate sector, the RBI also announced that banks will be allowed to lend to Real Estate Investment Trusts (REITs), subject to certain prudential safeguards.
The measures are aimed at improving last-mile credit delivery, strengthening institutional financing frameworks, and supporting growth in both the MSME and real estate sectors, Malhotra said.
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