Hotline: 1800 102 2007
X
Search Business Opportunities
2012-02-06

RBI calls for dedicated SME verticals at bank

The Reserve Bank has asked banks to set up dedicated verticals to help small and medium businesses to deal with financial matters.

The Reserve Bank has asked banks to set up dedicated verticals to help small and medium businesses to deal with financial matters.

"An SME-promoter knows the product, but he doesn't know finance," RBI Deputy Governor K C Chakrabarty said, speaking at an industry seminar organised by the SME Chamber of India here over the weekend.

Banks, which have long-term association with such SMEs as lending partners, can further this relationship by providing consultancy on finance, cash-flow management, taxation and other related things for a fee, he said.

"I think this is a product innovation, which needs to be done by banks and it needs to be done across the globe," Chakrabarty, whose responsibilities include customer services, said.

A desk should be available centrally that will help SMEs and can handle multiple SMEs, he said.

SMEs will have to pay for such service, he said. "I am not saying anything is free, you charge them for that."

However, banks should eye volumes in the business and ensure that the costs are low, Chakrabarty added.

He also came down hard on the high interest rates charged by banks in lending to SMEs, asking if they can be compared with rates charged to corporates.

As a matter of proper governance, Chakrabarty said, "I will be happy if banks disclose this in the balance sheet."

Related opportunities
  • Casual dine Restaurants
    About Us: As the name suggests, Dhadoom is a fun brand..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Womens Wear
    About: Founded in 2014, Varanga is a progressively - growing fashion..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Theme Restaurants
    About Us: Urban Lokal Café is focused on providing a safe..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • CAD/CAM/CAE & Multimedia
       About Us : Frameboxx Animation & Visual Effects offers skill-based curricula..
    Locations looking for expansion Maharashtra
    Establishment year 2008
    Franchising Launch Date 2008
    Investment size Rs. 20lac - 30lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts