Regulatory Alerts2023-03-16
Added
SMESPD Circular Letter No. 04: Regarding target and allocations of sector-wise loans for CMSME Entrepreneurs
The circular replaces previous guidelines by requiring banks and financial institutions to set CMSME loan targets based on the previous year's position by the end of January each year, with a minimum annual growth of 1% to reach at least 25% of total loans and advances by the end of 2024. By that date, at least 50% of CMSME loans must be for cottage, micro, and small enterprises, 15% for women entrepreneurs, and sector-wise allocations must include at least 40% for productive industries, 25% for services, and a maximum of 35% for trade. These directives are issued under Section 45 of the Bank Company Act, 1991, and Section 18 of the Financial Institutions Act, 1993, and take immediate effect.