RBI Dy chief asks banks to revamp MSME loans

Coimbatore, Dec 30 (KNN) The banks should consider to restructure the loans for both big as well as small enterprises, according to the RBI Deputy Governor K C Chakrabarty.
 
Speaking on the guidelines on restricting the MSME loans, Chakabarty said, “The guidelines are there. But banks seem to be considering bigger corporates for restructure. We are asking banks to consider both – big and small enterprises equally.”
 
Responding to the appeal by industries to reduce interest rates, Chakrabarty said that interest rate is a function of inflation. “The rates are high because of high inflation,” he said.
 
He further explained the framework under which the RBI will be able to assist the industries, and added that interest rates are determined by banks.
 
Banks are in business as the industries and the cost of credit also depends on competition, he added.
 
On lending to the priority sector, Chakrabarty said that the industries should interact more with the banks at the local level and tell the banks their problems.

He urged the industries not to depend on subsidies for their business.

The industry’s operations will be hit if the subsidies are withdrawn, he added.
 
Speaking on the issue of bitcoins, RBI Deputy Governor said that the Reserve Bank does not regulate bitcoins.