Expert Committee under U K Sinha on Micro Small and Medium Enterprises (MSMEs) submitted its report to RBI on 18th 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.
Introduction of voluntary certification of MSMEs that comply with prescribed internal governance standards.
Setting up of a National Council for MSMEs at the apex level under the chairmanship of the Prime Minister, for the sake of convergence of policies and creation of a promotional ecosystem.
Small Industries Development Bank of India (SIDBI), as a nodal agency, should ideally play the role of a facilitator to create a platform wherein various venture capital funds can participate and, in turn, create a multiplier effect to provide equity support to MSMEs.
The ‘PSBLoansIn59Minutes’ portal, which now caters only to existing entrepreneurs, be allowed to serve new entrepreneurs too, including those applying for loans under the Pradhan Mantri Mudra Yojana and Stand-up India.
All credit guarantee schemes - such as the Credit Guarantee Fund Trust for Micro and Small Enterprises and National Credit Guarantee Trust Company, should be subject to RBI regulation and supervision.