Need To Fuel Credit Flow To Businesses As Economy Thrives: PM Modi

Although the government's endeavour is to promote the private sector, public sector presence in banking and insurance is also required

Need To Fuel Credit Flow To Businesses As Economy Thrives: PM Modi

90 lakh Micro, Small and Medium Enterprises were given credit worth Rs 2.4 lakh crore from government.

Speaking at a webinar on the Union budget announcements on financial services, Prime Minister Narendra Modi said to help medium and small businesses during the Covid-19 pandemic, 90 lakh Micro, Small and Medium Enterprises (MSMEs) were given credit worth Rs 2.4 lakh crore.

Mr Modi on Friday emphasised on increasing credit flow to businesses to meet the needs of a fast-reflating economy and said financial products will have to be tailor-made for fintech and startups.

He said that although the government's endeavour is to promote the private sector, public sector presence in banking and insurance is also required.

"As our economy is growing, and growing fast, credit flow has also become equally important. You have to see how credit reaches new sectors, new entrepreneurs. Now you will have to focus on creation of new and better financial products for startups and fintech," Mr Modi added.

"The government is taking steps to make the financial services sector vibrant, proactive and strong,” he added.

He said the government would stand by all business decisions taken with the right intent.

"Supporting MSME and startups and expanding credit flow to them is necessary. The government has undertaken reforms and opened up sectors like farm, coal, and space. Now it's the responsibility of the financial sector to understand the aspirations of rural and smaller cities and make them the strength of Aatmanirbhar Bharat,” Mr Modi said.

Stating that Kisan Credit has helped small farmers and those involved in animal husbandry to come out with the grasp of informal lending, he said the private sector now will have to think of innovative financial products for this section of the society.