U K Sinha Committee on MSMEs

Expert Committee under U K Sinha on Micro Small and Medium Enterprises (MSMEs) submitted its report to RBI on 18^th June, 2019.

It was set up in January, 2019 to suggest long-term measures for the economic and financial sustainability of the MSME sector.

Major Recommendations: Establishing a Rs 5,000-crore Distressed Assets Fund to make equity investments that help unlock debt or revive sick units.

• Setting up a non-profit Special Purpose Vehicle (SPV) to support crowd-funding, particularly to pave the way for a conducive business ecosystem for MSMEs.
• Doubling the limit for banks to extend loans without collateral to Rs 20 lakh.