Kochi: RBI Governor Sanjay Malhotra on Monday said MSMEs are the "nursery of entrepreneurship" and are central to the Viksit Bharat vision.Inaugurating a Special Awareness Programme for MSME entrepreneurs organised by the Reserve Bank of India, in connection with International MSME Day 2026, Malhotra highlighted the role of micro, small and medium enterprises in driving economic growth and generating employment.He praised Kochi's entrepreneurial legacy - from the spice trade to the tourism, Ayurveda and plywood industries - and pointed to emerging sectors such as fintech and clean energy.Malhotra noted that credit growth in the MSME sector has outpaced overall credit growth and said Kerala has performed strongly in this regard.To narrow the credit gap in the sector, he highlighted RBI initiatives such as Priority Sector Lending targets, an enhanced collateral-free loan threshold, the Trade Receivables Discounting System, the Account Aggregator framework and the waiver of pre-closure charges.Malhotra urged banks to treat MSMEs as long-term partners and highlighted the upcoming Unified Lending Interface, which is expected to streamline credit appraisal.He called on entrepreneurs to make greater use of TReDS and maintain financial discipline and transparency.Reaffirming the RBI's commitment to supporting the sector, he said the central bank would continue efforts to reduce friction in credit delivery and strengthen district- and state-level engagement to help shape policy.The programme, held at a hotel in Kochi, was attended by more than 150 MSME entrepreneurs from across Kerala.Senior officials from the RBI, commercial banks, public sector banks, Small Industries Development Bank of India and the state government participated in the event.The programme featured technical sessions on access to credit, innovative financing solutions, support schemes offered by SIDBI, RBI initiatives for the sector, and programmes implemented by the Central and State governments.During an interactive session, entrepreneurs discussed issues related to access to credit, banking services and business development with bankers and government officials.
MSMEs nursery of entrepreneurship, key to Viksit Bharat vision: RBI Guv Sanjay Malhotra
RBI Governor Sanjay Malhotra lauded MSMEs as crucial for India's growth, highlighting their role in entrepreneurship and employment. He noted strong credit growth in Kerala's MSME sector and detailed RBI's initiatives to bridge credit gaps, including enhanced collateral-free loans and the Trade Receivables Discounting System. Banks were urged to partner with MSMEs, with the upcoming Unified Lending Interface set to simplify credit access.
RBI Governor Malhotra announced the Unified Lending Interface to streamline MSME credit access, coupled with enhanced collateral-free lending and Account Aggregator integration. India's fintech-first SME financing infrastructure signals GTM expansion for API-driven banking platforms targeting emerging economies.
