Reserve Bank of India (RBI) Governor Sanjay Malhotra
| Photo Credit:
ANI
MSMEs (micro, small and medium enterprises) should pursue formalisation, maintain credit discipline and adopt digital payments to build their long-term resilience and competitiveness, according to RBI Governor Sanjay Malhotra.
In his remarks, at a meeting with select MSMEs and representatives of MSME associations in Mumbai, the Governor underscored the pivotal role of the MSME sector in India’s economic landscape contributing significantly to GDP, exports and livelihoods.
Malhotra emphasised that improving access to timely and adequate formal credit for MSMEs remains a key policy priority of the Reserve Bank. He also outlined several policy and regulatory measures undertaken for the sector by Government of India and Reserve Bank.
MSMEs accounted for 33 per cent of Banks’ credit to the “industry” segment as at December-end 2025, with large enterprises accounting for 67 per cent.
Formalisation of MSMEs, which lack mandatory documents such as PAN or Goods and Services Tax Identification Number (GSTIN), entails registering these enterprises on Udyam Assist Platform (UAP).
Once these enterprises obtain the Udyam Registration Certificate from UAP, which is being managed by SIDBI, they become eligible to avail of loans under banks’ priority sector lending norms.
Published on February 16, 2026
