While GoI has established Micro Units Development and Refinance Agency Ltd. (MUDRA) for developing and refinancing all micro-finance institutions (MFIs) which are in the business of lending to micro and small business entities engaged in manufacturing, trading and service activities, RBI has prescribed a target of 7.5 percent of net bank credit for micro enterprises for achievement in a phased manner.
Further, medium enterprises 23 have also been brought into the ambit of priority sector credit. In order to improve liquidity for MSMEs, an electronic Trade Receivables Discounting System (TReDS) is being set up RBI to enable a speedy realisation of receivables.