Lok Sabha Question No. 198 (UNSTARRED), answered on 2020-09-14
Subject: Bank Credits
Ministry: FINANCE
Asked by: Raghu Ramakrishna Raju Kanumuru, Y. S. Avinash Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 198

## Bank credits

TO BE ANSWERED ON THE 14th September 2020 / Bhadrapada 23,1942 (SAKA)

## 198. SHRI KANUMURU RAGHU RAMA KRISHNA RAJU: SHRI Y.S. AVINASH REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken a decision to ease criteria for obtaining the credit from banks;
- if the details thereof; SO,
- whether the Government is aware that in of all this at the level some instances are arising that banks are still not coming forward to loans to individuals and small traders, if s0, the details thereof; and ground spite provide
- the taken by the Government to direct the banks not to turn steps down the enthusiastic traders? being small

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

decisions based on internal assessment of the commercial viability of the loan within their Board-approved and within RBIs prudential guidelines. Therefore; the question of Government deciding criteria fof obtaining credit from banks; of loans not provided in of such decisions, or of Government directing banks in such matters does not arise. policies spite being

A number of steps have been taken to ease access to bank credit; including to individuals and small traders. Enabled by these, India's rank on "Ease of getting credit' in World Banks Ease of Doing Business Index has improved from 44 in 2016 to 25 in 2020. Steps taken in this include, inter alia, the following: regard

- (1) to provide relief under COVID-19 pandemic, which include Steps
- (1) Launch of Credit Guarantee Scheme for Subordinate Debt for stressed MSME units to help sustain and revive MSMEs whose loan accounts have either become   non-performing assets (NPA) Or are on the brink of becoming NPA;
3. Launch of pre-approved loans under Emergency Credit Line Guarantee Scheme for sanction of Rs. 3 lakh crore to eligible   Micro, Small and Medium Enterprises (MSMEs);
4. ()Revision of the definition of MSME units to allow more enterprises to avail of benefits for MSMEs and to help existing MSMEs expand;
- 2) Introduction of externally benchmarked interest rates for all fresh floating rate loans to retail borrowers and micro and small enterprises from October 2019 onwards and to medium enterprises   from   April to ensure effective transmission of policy rate cuts;
6. (iv)Reassessment of working capital limits of existing borrowers;
- (3) up of Loan Management Systems and Centralised Processing Centres in Public Sector Banks (PSBs), resulting in retail loan  disbursement turnaround time reducing from 31 in the fourth quarter (Q4) of the financial year (FY) 2017-18 to 10 in Q4 of FY2019-20; Setting days days
8. Use of the Trade Receivables Discounting System (TReDS) for online financing of trade receivables of MSMEs on competitive terms;
9. Launch of PSBloansinS9minutes com for digital lending for MSMEs and borrowers; tetail
10. Initiation of end-to-end digital processing of loans to micro-enterprises by the State Bank of India through eShishu Mudra platform; and
11. Relief to banks in their Cash Reserve Ratio requitement from February to July