end, reserve bank of india has already advised banks to review their lending policies to the mse sector and incorporate provisions for sanctioning of standby credit facility, additional working capital limits, mid term review of regular working capital limits and to set timelines for credit decisions. however, a crucial piece for the success of the endeavour would be execution. banks need to put in place a strong oversight mechanism over the field level functionaries for ensuring compliance with the policies. i believe this is crucial for vibrancy of the msmes. b ) supporting faltering msmes let us recognize that failure is integral to entrepreneurship. unfortunately, however, failure of enterprises in our system is still not accepted graciously without attaching any stigma. while providing support to the msme firms over their life - cycle is important, it is also crucial that the banks support the firms in distress. an enabling mechanism has already been created by the goi and rbi has issued necessary guideline outlining a framework on revival and rehabilitation of msmes under temporary duress. under the framework, problem resolution is scaled up to a committee with a time bound schedule. i am told that all public sector, private sector and 4 major foreign banks have put in place an internal policy. until december 31, 2016, 1770 committees have been formed and 41417 cases have been referred to these committees during the period between july - december 2016. in my opinion, these numbers need to go up substantially and resolution reached. supporting msme firms in temporary distress is extremely important and hence, i would request my banker colleagues to support this initiative earnestly. c ) focusing on industrial clusters by providing shared access to amenities like testing centers, utilities, roads, security, training to workers, and marketing assistance, sme clusters provide substantial benefits in terms of technology absorption, efficiency enhancement and growth. firms in the msme sector which earlier faced difficulties in achieving economies of scale, specialization and innovation due to their small size are now increasingly benefitting from the advent of industrial clusters. several regional organizations have taken up cluster - based projects to promote smaller firms and this is where lies an opportunity for the banks. rbi has already advised banks to open more mse focused branch offices at mse clusters which can also act as counseling centers for mses. collaborating with sme association in these clusters can prove mutually beneficial for the banks as well as for the smaller firms. 2 / 6 bis central bankers'speeches mantras for borrowers 8. a )

##trillion dollar ( and not a one trillion dollar ) economy! although some argue that india catapulted to the trillion dollar league in 2007 on account of gdp valuation based on sharply appreciated exchange rate that resulted from huge inflows of foreign exchange, most others consider this as an emerging sign of take - off that could accelerate the growth momentum going forward. last year, economists at morgan stanley and other long - range forecasters predicted that india ’ s growth will start to outpace china ’ s within three to five years and continue at a faster rate than any other large country over the next 20 to 25 years. hence, i believe, and others do so too, that the indian economy is set to experience double digit growth during the coming two to three decades. while the future growth outlook of the indian economy looks promising, the challenge is to make it more inclusive. at the grassroots level, india continues to be a poor and less developed country in spite of years of financial and other support provided by the government to equity enhancing distributional programmes and the spectacular turnaround in investment and growth. according to a planning commission report on the methodology of estimation of poverty issued in 2009, the all india poverty head count ratio was at 37. 2 per cent in 2004 – 05 compared to 45. 3 per cent in 1993 – 94. prima facie, while the slow pace of reduction in poverty due to high population growth rate, large workforce still dependent on agriculture and illiteracy continue to obstruct the growth potential, the paradigm that these disabilities can be nevertheless be turned around into a winning proposition is also surely within the realm of possibility. in fact, many of the disadvantages which the indian economy faced in the past has already been waned and turned out to be advantages. to illustrate, a disadvantage that has plagued bis central bankers ’ speeches most developing economies including india has been that of scarcity of capital. this scarcity has hindered the investment and growth prospects of these economies in the past. this, however, is no longer a disadvantage. with most countries including india opening their doors to foreign investment, the question is no longer of scarcity of capital but the rate of return that we can pay on this capital. hence, capital is no longer a constraint in the era of liberalization and globalization if we are able to pay the required return and are able to attract the capital flows into our economies especially in the form of foreign direct investment. further, high population growth was another