Finance Minister Arun Jaitley Urges Banks To Help Young Entrepreneurs

Posted by JoiyaDr in Entrepreneurship, Politics
December 21, 2017

The Finance Minister Shri Arun Jaitley urged banks to establish micro, small and medium enterprise (MSME) intensive branches to facilitate credit to prospective entrepreneurs. Further, he emphasised opening up dedicated MSME intensive outlets and branches for the development of young entrepreneurs.

Highlighting the significance of the MSME sector in the country, Mr Jaitley stated that this sector generates the maximum employment in the country. He said that the lending capacity of the banks is under stress, due to the paucity of cash in the banks. Keeping the above fact in view, Mr Jaitly announced a ₹2.11 lakh crore plan to strengthen the banks.

But with very heavy heart, I point out that not all banks are co-operating with upcoming young entrepreneurs. Earlier, during the period of Pandit Jawahar Lal Nehru, such problems were being faced by the entrepreneurs, which lead to the set-up of the Industrial Development Bank to cater to the needs of young entrepreneurs.

As soon as the IDBI came into existence, big giants swallowed the loan amount and the small and medium enterprise sector were at a loss. The SME associations kept on fighting, with no result.

The delegation met the then Industry Minister, who was kind enough to establish a subsidiary of IDBI under the name Small Industrial Development Bank (SIDBI), to cater to the needs of the SME sector. The SIDBI was functioning well but did not have branches at the district level. This resulted in the District Industry office recommending the cases of loans to public sector banks.

Again the same problem of non-cooperation of banks is being felt, for which, Jaitley ji has taken a step to capitalize the banks with a sum of ₹2.11 lakh crores. But the fate of young upcoming entrepreneurs is at dark.

In my opinion, cases passed and sanctioned by a district task force committee are being rejected by the banks. The bank managers too, are in the habit of disobeying the instructions of the district collector, under one pretext or the other.

On discussing with the banks, it is found that the banks are afraid of becoming Non-Performing Assets. We request the banks that in case the beneficiaries fail to refund the loans, the sanctioning authority be made responsible for getting the sanctioned loan from the beneficiary as they have been sent by the banks itself. All efforts went in vain, and the prospective entrepreneurs are suffering.

Let the government look into the affair and see that industries could get proper financial assistance as recommended by the general manager of district trade and industries.