RBI Deputy Governor acknowledges critical role of MSME sector in India?s economic growth

Reserve Bank of India (RBI) has announced that 30th Meeting of the Standing Advisory Committee (SAC) to review the flow of credit to the Micro, Small and Medium Enterprises (MSME) sector was held in Coimbatore on October 27, 2025, under the chairmanship of Swaminathan J, Deputy Governor, RBI. The Deputy Governor acknowledged the critical role of the MSME sector as the key driver of India?s economic growth, employment, and industrial and regional diversification. Reaffirming the Reserve Bank?s commitment to further strengthen the credit ecosystem for MSMEs, he referred to initiatives such as the Unified Lending Interface (ULI), Account Aggregator framework, and the Regulatory Sandbox, which are facilitating data-driven and cash-flow based lending.

He also urged MSME associations to play a greater role in capacity building and in bridging information gaps to help enterprises better leverage formal financial channels. During the meeting, the SAC reviewed the flow of credit to MSMEs and deliberated on ways to address the issues related to the credit gap in the sector, cash-flow based lending and digital solutions for improved credit linkage, accelerating adoption of TReDS, enhancing the usage of credit guarantee schemes, and revival and rehabilitation of MSME units, among others.

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