What changed
RBI has instructed Lead Banks to include the Director of the concerned MSME Development Institute (MSME-DI) as an invitee in District Consultative Committee (DCC) meetings. This applies specifically to districts where MSME clusters are located. The move follows a request from the Ministry of MSME to leverage MSME-DI expertise in scheme implementation.
What it means for you
Banks must now coordinate with MSME-DI directors to discuss MSME-related issues during DCC meetings, which should help identify credit gaps and improve lending to the sector. This inclusion is expected to enhance the effectiveness of MSME-focused schemes and increase formal credit flow. Lead District Managers need to update their meeting protocols and invite lists accordingly.
What you must do
- Identify districts under your lead bank responsibility that have MSME clusters.
- Update the invitee list for DCC meetings to include the Director of the relevant MSME-DI.
- Instruct Lead District Managers to coordinate with MSME-DI offices for meeting schedules.
- Use the enclosed list of MSME-DI offices and their jurisdictional districts for guidance.
Who it affects
Lead Banks, Lead District Managers, District Consultative Committees (DCCs), MSME Development Institutes (MSME-DIs), MSME borrowers
Which districts require MSME-DI Director participation in DCC meetings?
Only districts where MSME clusters are located, as per the list provided by the Ministry of MSME and enclosed with the RBI circular.
What is the role of the MSME-DI Director in DCC meetings?
The Director will attend as an invitee to discuss MSME-related issues, helping to improve credit flow and scheme implementation for the sector.
Is this a mandatory requirement for all Lead Banks?
Yes, RBI advises all Lead Banks to invite the concerned MSME-DI Director to DCC meetings in districts with MSME clusters.