Comprehensive Reforms in Public Sector Banks and MSME Credit Flow

The Ministry of Finance has implemented various reforms to enhance credit discipline in Public Sector Banks (PSBs) and improve credit flow to Micro, Small, and Medium Enterprises (MSMEs). Key measures include the enactment of the Insolvency and Bankruptcy Code (IBC), the establishment of a Central Repository for monitoring corporate loans, and the introduction of the Mutual Credit Guarantee Scheme for MSMEs. Digital payment transactions have also surged, with UPI transactions growing significantly from 92 crore in FY 2017-18 to 18,587 crore in FY 2024-25, reflecting a CAGR of 114%.

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