MSME Ombudsman Needed

News Letter

MSME Ombudsman Needed

Recently I read a news article where 6000 bank employees are punished for various reasons.

It is the tip of the iceberg and major cause of sickness in MSME is the attitude of bank employees, not taking timely decisions. Though RBI is sensitive to problems of MSME and time to time, they give directives/circulars etc for correcting but they are not implemented in right spirit at branch level and for not taking a decision there is no punishment.

Branch level has been given a lot of powers including giving ad-hoc of 20% but it is not generally given and this is causing a lot of problems and every branch manager and credit officer tries to show their power of harassing the entrepreneurs.

Also, delay in renewal of A/C is getting delayed as they ask information in bit and pieces.

There are many such operational matters which causes sickness.

I suggest having MSME Ombudsmen kind of mechanism either at RBI or at MSME commissioner's office with the power of semi-judiciary. If this mechanism comes, in force, many problems will be sorted out at an early stage.

Happy New Year 2019

Regards,

N.P. Desai