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RBI’s Expert Committee on MSME undertakes comprehensive review of sector

The central bank announced the constitution of the Committee in its Fifth Bi-Monthly Monetary Policy Statement 2018-19, that was released on December 5, 2018.

Mar 22, 2019 12:52 IST
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The U.K. Sinha led Expert Committee on Micro, Small & Medium Enterprises (MSME) of the Reserve Bank of India (RBI) undertook a comprehensive review of the MSME sector to identify causes and to propose long term solutions for its development.

In this regard, the Committee on March 18, 2019 invited suggestions from the public on the following aspects by March 28, 2019:

To suggest definition of MSME for classification and identification of MSME on the basis of investment and turnover based criteria

Suggestions for improving the role of District Industrial Centres (DICs) and whether the DICs have met the intended objective?

Infrastructural gaps and problems affecting the development of the MSME clusters

Suggestions for addressing the structural gaps in capacity building of entrepreneurs

Whether there is awareness about bill discounting facility TReDS (Trade Receivables Discounting System) and suggestions for improving finance through TReDS

Suggestions for improving the credit rating mechanism for MSMEs

The Expert Committee on Micro, Small and Medium Enterprises (MSMEs) was constituted on January 2, 2019 under the chairmanship of U.K. Sinha, former Chairman of the Securities and Exchange Board of India (SEBI).

The Committee was constituted with an aim to understand the structural bottlenecks and factors affecting the performance of the MSMEs. After a thorough study, it will propose long term solutions for the economic and financial sustainability of the MSME sector.

The Expert Committee will submit its report by the end of June 2019.

Composition of the Committee

S.No.

Name

Role in the Committee

Profile

1

UK Sinha 

Chairman

Former Chairman, Securities and Exchange Board of India

2.

Ram Mohan Mishra

Member

Additional Secretary, Development Commissioner MSME

3.

Pankaj Jain 

Member

Joint Secretary, Department of Financial Services, Ministry of Finance

4.

PK Gupta 

Member

Managing Director, SBI

5.

Anup Bagchi

Member

Executive Director, ICICI Bank

6.

Abhiman Das

Member

Professor, IIM-Ahmedabad

7.

Sharad Sharma 

Member

Co-Founder, iSPIRT Foundation

8.

Bindu Ananth

Member

Chair, Dvara Trust

Terms of reference of the committee

Review the current institutional framework in place to support the MSME sector

Study the impact of the recent economic reforms on the MSME sector and identify the structural problems affecting its growth

Examine the factors affecting the timely and adequate availability of finance to the sector

Study the global best practices with respect to MSMEs and recommend its adoption in India

Review the existing MSME focused policies and its impact on the sector

Propose measures for leveraging technology in accelerating growth of the sector

Suggest long-term solutions for the economic and financial sustainability of the MSME sector

Constitution of Committee announced in RBI Policy

The central bank announced the constitution of the Committee in its Fifth Bi-Monthly Monetary Policy Statement 2018-19, that was released on December 5, 2018.

MSMEs contribute significantly to employment, entrepreneurship and growth in the economy. However, they remain vulnerable to structural and cyclical shocks. It is important to understand the economic forces and transactions costs affecting the performance of the MSMEs.

Fifth Bi-monthly Monetary Policy Statement 2018-19

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