New Delhi, May 7 (KNN) Gross bank credit deployment to the Micro, Small and Medium Enterprises (MSME) sector reached Rs 28.4 lakh crore in March 2025, recording a 15.2 percent growth compared to Rs 24.6 lakh crore disbursed during the same period last year, according to the latest data released by the Reserve Bank of India (RBI).
The credit disbursed represented 15.6 percent of India’s total non-food credit, which stood at Rs 182 lakh crore in March.
Micro and small enterprises (MSEs) received Rs 22.4 lakh crore in credit, marking a 13.5 percent increase from Rs 19.7 lakh crore in March of the previous year.
Medium enterprises witnessed a more substantial growth of 22.6 percent, with credit allocation rising to Rs 6 lakh crore from Rs 4.9 lakh crore during the same period.
In a recent development, policy think tank NITI Aayog published a report on enhancing MSME competitiveness, recommending that the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which administers the collateral-free credit guarantee scheme, be placed under a “robust regulatory authority.”
The report highlighted that the trust managing the CGTMSE fund currently lacks adequate regulatory authority and oversight in its operations, governance, and access to state-owned funds.
According to NITI Aayog, “The absence of the desired level of regulatory oversight at CGTMSE leads to challenges in balancing fund availability with financial discipline.”
(KNN Bureau)
