0. 157 ( 170. 69 % ) 0. 186 ( 18. 47 % ) 180. 634 ( 16. 61 % ) 211. 470 ( 17. 07 % ) 209. 81 ( ‐ 0. 78 % ) 4. 851 ( no change ) 8. 505 ( 75. 32 % ) 9. 302 ( 9. 37 % ) 2561. 280 ( 19. 94 % ) 3622. 907 ( 41. 44 % ) 4785. 27 ( 32. 08 % ) march 2009 march 2010 # march 2011 foreign banks * change in definition of the sector as per the msmed act 2006 advised to banks in 2007 # retail trade included in service sector source : scheduled commercial banks note : figs. in parentheses indicates y o y % growth / decline 4. the total mse credit as percentage of adjusted net bank credit ( anbc ) has been increasing since 2007 as shown below in chart 1. 1. in march 2011, it stood at 14. 8 % for the public sector banks ( psbs ). chart 1. 1 credit to the mse by psbs ( as % to anbc ) 5. despite the increase in credit outstanding to the sector, the msme borrowers feel that the lenders are not doing enough for the msmes and are catering more to the needs of the large corporates. this gap in perception needs to be bridged. 6. smes face a number of problems, such as, absence of adequate and timely banking finance, limited capital and knowledge, non - availability of suitable technology, low production capacity, ineffective marketing strategy, identification of new markets, constraints on bis central bankers ’ speeches modernisation & expansion, non availability of highly skilled labour at affordable cost, follow up with various government agencies to resolve problems, etc. more recently, the msme association / chambers feel that the global recession, inflation and depreciation of the rupee is affecting them adversely. 7. i would now like to highlight some of the major constraints faced by the msme sector and the important measures taken by government of india and reserve bank of india to address them : ( i ) access to credit access to timely and adequate credit is critical for msmes growth and development. to ensure enhanced credit flow to the sector, and more so to the micro units, in terms of the recommendations of the prime minister ’ s task force on msmes ( chairman : shri t. k. a. nair, principal secretary,

term 1. effective customer protection regulations together with an easily accessible mechanism to resolve disputes between customers and the regulated entities in a timely manner, are essential for promoting consumer confidence. further, awareness measures for customers on financial matters instills in them knowledge about their rights and responsibilities and helps them to make right financial decisions. specifically, in its pursuit of the objective of consumer protection, the reserve bank introduced the banking ombudsman scheme on june 14, 1995, for the customers of banks, which has been reviewed periodically so that it retains its relevance as an apex level complaint redressal mechanism for customers of banks. reserve bank has also launched the ombudsman schemes to include the customers of non - banking financial companies and pre - paid payment instrument ( ppi ) providers. these schemes have evolved over time as apex level complaint redressal mechanisms for customers of entities regulated by the reserve bank. i may mention here that these schemes provide a cost - free and expeditious redressal of complaints relating to deficiency in the services by eligible entities covered under respective schemes. 1 / 7 bis central bankers'speeches the reserve bank had created a dedicated customer service department in 2006 to act as the nodal department in the reserve bank for grievance redressal of complaints received from the public. the department, has since been renamed as consumer education and protection department ( cepd ), and continues to focus on providing a level playing field between suppliers and consumers of financial services, by easing the imbalances emanating from information asymmetries, inadequate disclosures and unfair treatment. in addition, the charter of customer rights2, put in place by the reserve bank in december 2014, comprising of broad over - arching principles to be adopted by banks has been playing an important role in protecting the interests of their customers. in india, we have a well - defined grievance redressal structure, the first resort on the complaint being the branch itself with proper escalation level in the banks / fsps. it is expected that the grievances of the customers are redressed in a hassle - free manner at the first point of contact with the ombudsman being the last resort. an important milestone in strengthening the grievance redressal mechanism available to bank customers was the institutionalisation of the internal ombudsman ( io ) mechanism in 2015 in all public sector banks, select private sector and foreign banks. based on a review of the framework