Sanjay Malhotra, Governor of the Reserve Bank of India (RBI) | Photo credit: ANI
In his remarks, the Governor, at a meeting with select MSMEs and representatives of MSME associations in Mumbai, underscored the crucial role of the MSME sector in India’s economic landscape, which contributes significantly to GDP, exports and livelihoods.
Malhotra emphasized that improving access to timely and adequate formal credit for MSMEs remains a key policy priority of the Reserve Bank. He also outlined various policy and regulatory measures taken by the Government of India and the Reserve Bank for the sector.
SMEs accounted for 33 percent of banks’ lending to the “industry” segment at the end of December 2025, while large corporations accounted for 67 percent.
The formalization of MSMEs, which do not have mandatory documents such as a PAN or a Goods and Services Tax Identification Number (GSTIN), involves registering these enterprises on the Udyam Assist Platform (UAP).
Once these companies obtain the Udyam Registration Certificate from UAP, which is managed by SIDBI, they will be eligible for loans under the banks’ priority sector lending norms.
Published on February 16, 2026
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