Shillong, Feb 10, 2020: Initiated by the Reserve Bank of India to promote financial awareness through a focused campaign on key topics every year since 2016, Financial Literacy Week (FLW) 2020 was on Monday inaugurated here. Based on the theme “Micro, Small and Medium Enterprise (MSME)” and how they benefit by being a part of the formal banking system, the FLW will be observed in the State from February 10 to 14, 2020.
Speaking as the Chief Guest, General Manager (OIC), RBI, Shillong, Anurag Asthana, said that MSME plays a significant role in economic development in terms of their contribution to employment generation, innovation, exports and inclusive growth. With a vast network of 6.34cr enterprises, the sector contributes about 45% of manufacturing outputs, more than 40% of exports and 28% of GDP while creating employment of 11cr. This in terms of volume stands next to agriculture, he informed. Adding that the lack of understanding of financial products and services, banking procedures and risk return framework inhibits the growth of MSME units, he hoped that the FLW will go a long way in addressing some of these issues.
General Manager, NABARD, Y K Rao, informed the gathering that in terms of financial inclusion Meghalaya is faring poorly. Even though bank penetration is good, the distribution of banking units is skewed, he said. Rao also said that the per capita credit flow and CD ratio in the State is low despite the fact that there are many opportunities available particularly in the tourism and food processing sector. In the farming sector, there are close to 2,32,000 holdings in the State but there are only 90,000 Kisan Credit Cards. Due to this fact the beneficiaries under the Pradhan Mantri Kisan Samman Nidhi are also low.
As part of the week long programme, the focus of the MSME theme will be on creating awareness about aspects relating to Formalisation, Collateral Free Loans, Discounting of Receivable (TReDs), rehabilitation of stressed units and timely repayment. RBI Shillong will also be organising MSME Town Hall Meeting at Syntein village in East Khasi Hills District on February 14, 2020 and would be conducting Special Literacy Camps for Micro and Small Entrepreneurs in potential/natural MSME clusters during the FL Week.