CREDIT - RBI


Decisions/ Action Points emerged during the 4th Meeting of Standing Advisory Committee (SAC) on Flow of Institutional Credit to SSI sector held on 1st September, 2003 at RBI, Central Office, Mumbai.

The 4th meeting of the reconstituted Standing Advisory Committee (SAC) on Flow of Institutional Credit to SSI sector was held on 1st September, 2003 at RBI, Central Office, Mumbai under the Chairmanship of Shri Vepa Kamesam, Deputy Governor, RBI. The decisions/ action points emerged during the above meeting were as under: -

  1. Those banks who have not intimated RBI regarding self-set target fixed for SSI, should do so by 30th September, 2003.


  2. Banks may examine having at least 3 slabs for rate of interest loans up to Rs.50000/-, between Rs.50000/- & Rs.2 lakhs and above Rs.2 lakhs.


  3. Those banks who have not issued instructions regarding enhancing composite loan limit for SSI from Rs.25 lakhs to Rs.50 lakhs, should do so by 30th September, 2003.


  4. Credit requirement in the identified clusters to be incorporated in the banks' Annual Credit Plans for the year 2003-04.


  5. SIDBI should take steps to give adequate publicity to their schemes.


  6. Banks to give adequate publicity to their schemes/facilities like availability of collateral free/composite loans and schemes under TUFs/ NEF/KVIC/CGTSI etc.


  7. Better coordination between bankers and SSI Associations to increase credit flow to SSI Sector is required.


  8. Banks should initiate innovative steps for increasing credit flow by means of promoting Mutual Funds to SSI and venture capital funds.


  9. Those banks who had not forwarded a copy of the review note to RBI, on the progress made by them in assisting the SSI units under the new guidelines on rehabilitation of sick SSIs may do so by 30th September, 2003.


  10. Interest Subsidy Eligibility Certificates (ISEC) issued by KVIC to be recognized by banks for extending credit to entrepreneurs.


  11. NABARD to furnish details of their promotional schemes to SSI Associations and KVIC.


  12. Issue of reduction in interest rates on SLR bonds to be referred to Monetary Policy Department and Internal Debt Management Department on getting reference from SFCs. Other issues to be taken by them with SIDBI.


  13. CGTSI should inform about the action taken for fixing graded guarantee fee.