Preamble: | The Micro, Small and Medium Enterprises (MSME) Sector, particularly the tiny segment of the small enterprises, faces huge challenges as under: * Competition from both domestic & multi-national companies. * Inadequate access to finance due to lack of financial information and non-formal business practices * Lack of access to private equity and venture capital * Lack of access to inter-state and international markets; * Limited access to secondary market instruments * Fragmented markets in respect of their inputs as well as products * Vulnerability to market fluctuations * Limited access to technology and product innovations * Lack of awareness of global best practices * Considerable delays in the
…show more content…
| RBI GUIDELINES: | RBI guidelines also mandate that every bank shall have to put in place an SME policy duly approved by its Board of Directors. Accordingly the Bank’s MSME policy and Strategies encompassing the various schemes and norms within the overall ambit of the Govt / RBI directives is given hereunder.This policy would cover all credit related exposures (both fund based and non-fund based) and the guidelines relating to Credit Risk Management, credit delivery, credit monitoring and recovery shall be uniformly applicable to the MSME policy. With changes in any of these guidelines, at appropriate levels, the MSME policy would also automatically stands amended. | MSME Definition | In terms of definition, the following advances would presently be covered under MSME:Micro (manufacturing) Enterprises
Enterprises engaged in the manufacture / production, processing or preservation of goods and whose investment in plant and machinery (original cost including land & building and such items as in 2.1.1(a) does not exceed Rs.25 lakh, irrespective of the location of the unit.
Micro (service) Enterprises
Enterprises engaged in providing /