The Reserve Bank of India (RBI), asked the financial institutions to constitute dedicated verticals to provide financial assistance to small and medium businesses.
While addressing an industry seminar organised by the SME Chamber of India here, RBI Deputy Governor, Mr KC Chakrabarty, said, “An SME-promoter knows the product, but he doesn't know finance. I think this is a product innovation, which needs to be done by banks and it needs to be done across the globe.”
He asked banks to strengthen their long-term association of lending partners with SMEs by providing consultancy on finance, cash-flow management, taxation and other related things for a fee.
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