The PHD Chamber of Commerce and Industry (PHDCCI) presented forth a comprehensive set of policy recommendations to the RBI Governor, which is aimed at enhancing credit access, regulatory support, and financial efficiency for India’s Micro, Small, and Medium Enterprises (MSMEs). Recognizing the critical role of MSMEs in driving India’s economic growth, PHDCCI’s submission included eight targeted action points. The Chamber appreciated the Union Government’s move to expand credit guarantee schemes and urged the RBI to ensure effective implementation. To that end, it was suggested that RBI should create designated helpdesks at field offices level to support MSMEs facing credit access challenges.
A key recommendation included streamlining and rolling out the proposed Micro Credit Facility Cards, announced in the Union Budget, with a ₹5 lakh limit each. PHDCCI proposed renaming them to distinguish from consumer credit cards, standardizing issuance procedures, ensuring interest rate caps, and launching a centralized portal for monitoring card applications. PHDCCI also stressed the need to digitize and standardize banking documentation across institutions to reduce physical paperwork and promote transparency. In a push for inclusive financing, PHDCCI advocated for removing the current ₹20 lakh cap on Priority Sector Lending classification for credit through NBFCs, requesting an increase to at least ₹1 crore to support working capital needs in line with revised MSME definitions.