Sanjay Malhotra, RBI Governor addressing an awareness programme for MSME entrepreneurs in Kochi
Sanjay Malhotra, RBI Governor has urged banks and financial institutions to view micro, small and medium enterprises (MSMEs) not merely as beneficiaries of regulatory mandates or government schemes, but as long-term business partners whose growth drives both economic and social development.Addressing an awareness programme for MSME entrepreneurs in Kochi on the occasion of the International Day of MSMEs, the RBI Governor called on banks to leverage India’s digital public infrastructure, including the TReDS, account aggregator and ULI frameworks, to build a more inclusive and efficient credit ecosystem.Emphasising the critical role of small businesses in achieving India’s development goals, Malhotra described MSMEs as the “nursery of entrepreneurship” and stressed the need for a financial system that effectively serves enterprises across districts and towns.The bank credit to the MSME sector has witnessed robust growth in recent years, outpacing overall bank credit expansion. While acknowledging the persistence of a significant credit gap, he expressed confidence that ongoing policy initiatives and technological interventions would help improve access to finance.Highlighting the sector’s contribution to the economy, the Governor said MSMEs account for nearly 31 per cent of India’s GDP, 45 per cent of manufacturing output, almost 50 per cent of exports and provide employment to around 33 crore people, making them the country’s largest source of employment outside agriculture.Malhotra encouraged entrepreneurs to invest in technology, innovation and research, actively participate in digital lending platforms, engage with RBI through consultation mechanisms and register on the Udyam portal to avail themselves of government support schemes.He reiterated that the RBI would continue strengthening financial infrastructure, reducing barriers to credit access and working closely with stakeholders to enhance the growth and resilience of MSMEs nationwide.Around 140 MSME entrepreneurs from across Kerala attended the programme, which focused on improving financial literacy, expanding access to formal credit and facilitating interactions among entrepreneurs, banks and government agencies.Referring to Kerala’s entrepreneurial ecosystem, the Governor said the State and Kochi exemplify the dynamism of the MSME sector, drawing strength from traditional industries such as coir, spices and tourism while emerging as hubs for innovation in information technology, electronics, fintech and clean energy.Praveen Kumar Vasantha Ramachandran, Regional Director for Kerala & Lakshadweep, RBI, Thiruvananthapuram, R Giridharan, CGM, FIDD, RBI, Central Office Pramod Kumar GM(O-i-C), RBI, Kochi addressed the inaugural session.Published on June 22, 2026
