Reserve Bank of India (RBI) Governor Sanjay Malhotra says banks should fundamentally change how they engage with micro, small and medium enterprises (MSMEs), urging them to see the sector as a long-term business partner rather than a regulatory obligation. Speaking at an awareness programme in Kochi to mark International MSME Day 2026, he also encouraged entrepreneurs to take ownership of their growth by investing in technology, research and development, and innovation as consumer expectations evolve.
Malhotra calls on financial institutions to accelerate digital adoption and support faster, data-driven and more inclusive credit delivery. He specifically points to investment in digital public infrastructure including the Account Aggregator framework, the Unified Lending Interface (ULI), and the Trade Receivables Discounting System (TReDS). He also highlights the role of relationship-based lending enabled by digital data, alongside faster implementation of priority sector lending, MUDRA, and credit guarantee schemes. The Hindu adds that Malhotra refers to the upcoming Unified Lending Interface, described as aiming to make credit more “frictionless” for borrowers across India.
