RBI calls for increased credit for MSMEs in J&K and Ladakh
The central bank aims to boost entrepreneurship and employment by improving market access and formalising small businesses in the two Union Territories.
The Reserve Bank of India (RBI) has urged for better institutional credit, improved market access, and the formalisation of Micro, Small and Medium Enterprises (MSMEs) in Jammu and Kashmir and Ladakh, according to the Kashmir Observer.
During the 72nd meeting of the Empowered Committee on MSMEs for the two Union Territories, RBI Jammu Regional Director Prabhakar Jha noted the sector's capacity to create jobs and foster entrepreneurship.
Jha identified horticulture, tourism, food processing, handicrafts, and handloom as areas with significant development potential in the region.
The meeting, held for the quarter ended September 30, 2026, focused on increasing the use of the Trade Receivables Discounting System (TReDS) platform, Udyam Assist, and Udyam Registration.
The committee also reviewed the MSME Annual Credit Plan 2026-27, the availability of collateral-free loans, and progress under schemes such as PM-MUDRA and PM-SVANidhi.
Stakeholders and participating banks assured the committee they would follow up on the suggestions to improve credit flow and the MSME ecosystem.