They provide the largest share of employment after agriculture and are nurseries for entrepreneurship and innovation. Acknowledging the importance of the sector to economic growth, both- Government of India as well as RBI have been taking measures to enhance flow of credit to the sector. On its part, RBI has launched several initiatives in this regard.
To specifically address the issue of delayed payments to the MSME sector, TReDS has been conceptualised as an authorised electronic platform to facilitate discounting of invoices/bills of exchange of MSMEs. On the other hand, as part of capacity building of MSME divisions in banks and to develop entrepreneurial sensitivity, RBI has recently launched targeted training programmes for the functionaries in commercial banks.