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Traditional Methods of assessing credit worthiness unsuitable for MSMEs: S S Mundra, Deputy Governor, RBI

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Traditional Methods of assessing credit worthiness unsuitable for MSMEs: S S Mundra, Deputy Governor, RBI


Traditional methods of assessing credit worthiness do not work for MSMEs. This was said by the Deputy Governor, Reserved Bank of India – S. S. Mundra at ASSOCHAM’s 3rd National Summit- Bankers Borrowers Business Meet 2017 in New Delhi. The Deputy Governor added that India has over 50 million MSMEs that account for one-third of the country’s GDP. It is, therefore, essential for Banks to understand the credit cycle of MSMEs, he observed.
Presenting the banking perspective, the Managing Director, State Bank of India – P K Gupta observed that MSMEs in India have traditionally suffered from a high-risk perception. However, banks are now moving from balance sheet financing to supply chain financing, he added.
Delivering the Theme Address, the Chairman and Founder, Capital First – V Vaidyanathan observed that we need to encourage more lenders to cater to underserved sectors like the MSM…