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The Economic Times

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Bank-NBFC co-lending pacts may be expanded to aid MSMEs

A parliamentary panel suggests boosting bank and NBFC co-lending to help MSMEs access cheaper credit. It also proposes listing profitable regional rural banks and reinforcing state-run general insurers. The committee highlighted a significant credit gap for small businesses and a decline in insurance penetration. Recommendations include developing climate risk insurance and using business correspondents to reach rural areas.

17 Mar 2026 12:55 am