timely realization of receivables. This is a path-breaking initiative with very few parallels in other countries. However, the implementation would need wholehearted support from all the major stakeholders, i.e. the large corporates, the PSUs and eventually, the Government enterprises. 14. RBI has also recently issued guidelines to streamline the credit flow to the MSME sector.
The banks have been advised to review their existing lending policies to the MSE sector and fine-tune these policies by incorporating provisions for sanctioning of Standby Credit Facility in case of term loans, Additional Working Capital Limits, Mid Term Review of Regular Working Capital Limits, setting timelines for making credit decisions, etc.