Incremental credit to Medium Enterprises to qualify as Priority Sector
The Medium Sector (as defined vide notification No.S.O.1722(E) dated October 5, 2006 of the Ministry of Small Scale Industries) is also facing liquidity tightness.
In order to enhance credit delivery to the medium sector, it has been decided to include, as eligible priority sector lending, incremental credit, including export credit, extended to the medium enterprises by the scheduled commercial banks (excluding RRBs) over the outstanding credit as on November 13, 2013. The facility will be available upto March 31, 2014 and will be within the overall target of 40 per cent.
Background
The liquidity support comes in the wake of slowdown in the economy which has resulted in liquidity tightness in a large number of Micro and Small Enterprises (MSEs) in the manufacturing and services sector, particularly due to delayed settlement of receivables from large corporate, Public Sector Undertakings and government departments.
Alpana
Killawala
Principal Chief General Manager
Press
Release: 2013-2014/1009Principal Chief General Manager
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