CII asks RBI for separate SME financing

Mumbai, Oct 22 (KNN) The Confederation of Indian Industry (CII) has asked the Reserve Bank of India (RBI) to open a separate department for small and medium enterprises (SME) financing to ensure the availability of credit at affordable rates to this sector.

During a meeting with RBI Governor Raghuram Rajan here, Associated Chambers of Commerce and Industry of India (ASSOCHAM) said there was a need for municipal corporations to support fundraising activities.

It said the top bank should create a framework for developing a liquid municipal bond market in India as it would allow civic bodies to raise money for 10-20 years, which is ideal for urban infrastructure financing.

Rajan, who is due to announce his first half-yearly monetary policy on October-29, had met with industrial houses and rating agencies to gauge their views on the economy and liquidity in the system.