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RBI Governor: MSMEs Are Key Partners, Not Compliance
23 Jun
Summary
- Banks must treat MSMEs as vital partners, not just compliance.
- Invest in technology, R&D, and innovation for MSME growth.
- Leverage digital infrastructure for efficient, data-driven credit.
Reserve Bank of India (RBI) Governor Sanjay Malhotra has urged banks to enhance their digital adoption and significantly alter their approach towards Micro, Small, and Medium Enterprises (MSMEs). Speaking on International MSME Day 2026 in Kochi, he stressed that MSMEs should be recognized as long-term business partners rather than merely a regulatory obligation.
Malhotra advised entrepreneurs to actively invest in technology, research and development, and innovation to adapt to evolving consumer preferences. He also called upon financial institutions to make strategic investments in digital public infrastructure. These include the Account Aggregator framework, Unified Lending Interface (ULI), and the Trade Receivables Discounting System (TReDS), to facilitate quicker, data-informed, and inclusive credit.
Furthermore, the RBI Governor encouraged lenders to expedite the implementation of key schemes. This includes programs related to priority sector lending, MUDRA, and credit guarantees. He underscored the necessity of reorienting bank perspectives on MSMEs, promoting relationship-based lending supported by digital data to ensure sustainable financing for the sector.
