Introduction

The function of the Micro, Small, and Medium Enterprises or MSME in the field of economic and social development of our country is well established as this kind of sector contributes about 8% of the country’s GDP and 45% of the output in manufacturing and around 40% of the subtotal exports of the country. About 26 million enterprises produce about 7500 industrial products and this kind of sector has been turned into a significant and important source to supply the raw materials to a large scale industry. The MSME sector has flourished as the major supplier of mass consumption goods and products as well as producers of products like electronic ones, electrical equipment, and drugs & pharmaceuticals. Thus it has been registering a higher growth rate over the years in a consistent manner.

The Micro, Small, and Medium Enterprises or MSME sector has been playing a catalytic role in the field of employment generation as per its labor-intensive nature compared to the large scale industries. Currently, this industry is providing the highest employment of around 60 million people just next to the agriculture sector. Moreover providing huge employment to millions of people of our country, this sector has been turned into a nursery of the entrepreneurship programme, frequently determined by the creativity of individuals and their innovation. With its dynamism, this sector has presented admirably and unique and adaptability to resist the current economical drop off due to the global retardation.

Besides the loans and other banking facilities, do the banks provide any guidance to MSE entrepreneurs?

Banks contribute the following services to the Micro and Small Enterprises or MSE entrepreneurs:

Rural Self Employment Training Institutes or RSETIs, Initially the Ministry of the Rural Development or MoRD, Rural Self Employment Training Institutes, or RSETIs have been formed by different banks throughout the country. These Rural Self Employment Training Institutes or RSETIs are controlled by the banks with an active and proper co-operation given by the Government of India and the State Governments. RSETIs run various short duration that ranges preferably from 1 to 6 weeks, the skill up-gradation programs to help the existing entrepreneurs to compete in this changeable global market. RSETIs assure that a list of candidates trained by them is sent to all the branches of the bank and co-operate with them to grant the financial assistance under any scheme sponsored by the Govt. or direct lending. economical Literacy and consultancy support. Banks have been advised to either set up special cells at their branches separately or integrate this kind of function in the Financial Literacy Centres or FLCs formed by them, according to their comparative advantages. Banks assist the MSE entrepreneurs Through these FLCs regarding financial literacy or operational skills including accounting and finance, business planning, etc. Providing a guide for the new entrepreneurs in this sector, a booklet named as Nurturing Dreams and Empowering Enterprises – Financing needs of Micro and Small Enterprises or MSEs– A guide has been introduced dated August 6, 2013, by the Reserve Bank of India or RBI.

What is the role of the Banking Codes and Standard Board of India (BC SBI) for MSEs?

• Planning, evolving, preparing, developing, promoting, and publishing the comprehensive codes and standards for the banks to provide fair treatment to the customers.
• To perform as an independent and autonomous body for monitoring purposes.
• To conduct and undertake the research works of Codes and Standards now in use around the world.
• To help people affected by any natural calamities
• Undertaking the campaigns and initiatives to spread awareness about the Codes amongst the customers and banks
• Providing faculty support to the training establishments of the banks
• Participating in on-location workshops held by the member of the banks to increase coverage associates with the customer awareness programs which are conducted by the Banking Ombudsmen providing credit counseling services in Mumbai that publishes quarterly newsletter named as the Customer Matters containing matters of interest to customers
• Examining each compliant to identify any kind of systemic issues that may exist and run the matter with the respective banks.
• Ensuring that the systems and procedures are amended so that such complaints do not reoccur.