Part of this reluctance of the formal financial sector to reach out especially to the MSEs arises from their own inability to assess the potential of companies in this sector. It is in this context that credit scoring models can prove to be a valuable tool in better understanding and appraising the sector.
*  *  *  The speaker acknowledges the contributions of Shri Ajay Prakash and Shri G V Nadhanael of the Reserve Bank of India and the inputs from NABARD. Shri Kailash Singh, Managing Director, Tefla’s, Shri Ramesh Abhishek, Chairman, Forward Market Commission, Dr. D. Bhalla, Joint Secretary, Department of Food and Public Distribution, Government of India, Shri.