A day after unveiling the loan restructuring for micro, small and medium enterprises (MSMEs), the Reserve Bank of India (RBI) on Wednesday decided to constitute an expert committee on MSMEs, headed by former SEBI Chairman UK Sinha, to understand the structural bottlenecks and factors affecting the performance of the MSMEs.
The other members of the committee are: Ram Mohan Mishra, Additional Secretary, Development Commissioner MSME, Pankaj Jain, Joint Secretary, Department of Financial Services, PK Gupta, Managing Director, SBI, Anup Bagchi, Executive Director, ICICI Bank, Abhiman Das, Professor, IIM-Ahmedabad, Sharad Sharma, Co-Founder, iSPIRT Foundation and Bindu Ananth, Chair, Dvara Trust.
The terms of reference of the committee will include review of the current institutional framework in place to support the MSME sector and the impact of the recent economic reforms on the sector and identify the structural problems affecting its growth. It will also examine the factors affecting the timely and adequate availability of finance to the sector, study the global best practices with respect to MSMEs and recommend its adoption in India, wherever appropriate and review existing MSME focused policies and its impact on the sector. The panel will also propose measures for leveraging technology in accelerating growth of the sector and suggest long-term solutions for economic and financial sustainability of the MSME sector. The expert committee will submit its report by June end.
“It has been considered necessary that a comprehensive review is undertaken to identify causes and propose long term solutions, for the economic and financial sustainability of the MSME sector,” the RBI said.