Page 36 - Banking Finance December 2023

ARTICLE

MSME FUNDING:

A DIFFERENT

STANDPOINT

FOR BANKS IN

INDIA

Introduction: industries, promotion of regional balance and inclusive
development, and so on. The Micro, Small and Medium
The Micro, Small and Medium Enterprises (MSME) sector
has emerged as a highly vibrant and dynamic sector of the Enterprises Development Act was notified in 2006 to
address different issues affecting MSMEs, inter alia, the
Indian economy over the last five decades and have been a
coverage and investment ceiling of the sector. The earlier
primary focus of policymakers at the central and state levels
as it is a valuable contributor to the overall economic growth criterion of classification of MSMEs under MSMED Act, 2006
and development in terms of employment, value chain was based on investment in plant and machinery /
equipment. A revision in MSME criteria of classification was
creation, foreign exchange earnings, critical supplier of large
announced in the Aatmnirbhar Bharat package on 13th
May, 2020. This has been done in order to be realistic with
About the author time, to establish an objective system of classification, and
to provide ease of doing business.
Dr. Deepak Kumar
Senior Manager (Research)
U L A, C&P Micro enterprise: Investment in plant and machinery or
Union Bank of India equipment does not exceed one crore rupees and turnover
Arbind Singh does not exceed five crore rupees.
Chief Manager (Faculty) Small Enterprise: Investment in plant and machinery or
U L A, C&P equipment does not exceed ten crore rupees and turnover
Union Bank of India
does not exceed fifty crore rupees.
Avijit Kumar Agnihotri
Medium enterprise: Investment in plant and machinery or
Chief Manager (Faculty)
U L A, C&P, equipment does not exceed fifty crore rupees and turnover
Union Bank of India does not exceed two hundred and fifty crore rupees.

32 | 2023 | DECEMBER | BANKING FINANCE