regional office of the banks and subsequently in the recognized clusters. in case of micro and small enterprises simplified procedure of loan application / sanction should be followed, score based lending be done up to rs 2 crores, working capital limits be given by projected turnover method, and term loans be sanctioned as recommended above to prevent the burden of data collection, project report / projections preparation for msmes. the disposal of applications should be done in a time bound manner, which should be within the overall time limit prescribed by rbi. all banks should tap the available technology and set up central registration of loan applications. the same set up can be used by the borrower for tracking of the status of application on the internet on the basis of the receipt issued to him. the borrower may also be provided option of tracking his application over telephone on the toll - free helpline. the same technological setup may also be used for making online applications. online applications may be popularized and publicized by all branches. lack of adequate capacity is the key feature, as regards micro, small and medium enterprises are concerned. in order to equip the msmes with the capacity to manage their businesses effectively and efficiently comprehensive guidance and training on setting up new units as well as providing continuous education on different aspects of successful management of existing business enterprises must be provided. while the rural self employment training institutes ( rsetis ) are working in this direction there is a need to examine the impact of rsetis. a scheme for utilizing ngos to provide training services to tiny micro enterprises could be encouraged. entrepreneurship development is important in view of its visible impact on wealth creation and employment generation. to facilitate and encourage this, skill building has been impressed upon by the prime minister ’ s task force for msmes. enterprise development centres ( edc ) should be set up by the central / state governments with incubators to provide training not just for setting up of new units but also to provide continuing education on different aspects like product design, packaging, technology upgradation, financial management and marketing. role of associations all slbc convenor banks have been to review their institutional arrangements for delivering credit to the msme sector, especially in 388 clusters identified by united nations industrial development organisation ( unido ) spread over 21 states in various parts of the country. the central bank of india has presence in 47 clusters identified by unido and these branches have been designated as specialised msme branch. the msme associations / chambers may bring to the notice of sl

disadvantage faced by many developing countries while making efforts to improve the gdp in per capita terms. however, with the emergence of skills and knowledge as new engines of economic growth, higher population growth is more of an opportunity than a constraint. according to census 2011, 56. 9 per cent of india ’ s total population belongs to the age group 15 – 59 years. importantly, only 7. 5 per cent of the population belongs to the age category “ 60 years and above ”. this shows that india is yet to experience the problem of aging. further, it is predicted that india will see a sharp decline in the dependency ratio over the next thirty years, which will be a major demographic dividend for india. moreover, it is estimated that not only india ’ s demographic trend would remain favourable for the next three decades but also remain better than other bric economies. we have to, however, realise that these advantages will not transform on its own to higher economic growth. in this regard, appropriate interventions would be required to reap maximum benefits from this favourable demographic dividend by investing in education and skill development. in the union budget for 2011 – 12, indian government has allocated rs. 52, 057 crore for the education sector, which is 24 per cent higher than the 2010 – 11 education expenditure. however, expenditure on education as per cent of gdp is relatively low in india when compared with some of the developed nations as also with some developing countries ( table ). among the g - 20 countries, india not only has lowest educational indicators, but the public education system is also poor when compared with other bric countries and some of the emerging market economies. in 2009, world bank expressed the view that acute shortage of skills especially in the area of civil engineering shadows the growth prospects of the indian economy. according to prime minister dr. manmohan singh, “ around 10 per cent of the relevant age group is enrolled in any institute of higher education as compared to 40 to 50 per cent in most developed countries ”. banks play a facilitating and enabling role in this endeavour by extending education loans and they have a great responsibility to ensure that no deserving student is denied an education loan. however, just providing education loan is not sufficient. industry and bankers would have to work together to ensure that the employability of such students is high and that the people with the right type of education and skills are available for the industry. table : expenditure on education country switzerland united states france uk malaysia mexico spending on education as