February 10, 2004

A Working Group on Flow of Credit to SSI sector has been constituted under the chairmanship of Dr. A. S. Ganguly, Director, Central Board of the Reserve Bank of India. Other members of the Working Group are:

1. Padmashri Jaya Arunachalam, Working Women's Forum, Chennai.

2. Shri Kailash P.Jhunjhunwala, Director, State Bank of India Board.

3. Dr. Ashok Jhunjhunwala, Electrical Engineering Department, Indian Institute of Technology, Chennai.

4. Shri A.K.Purwar, Chairman, State Bank of India.

5. Shri N.Vaghul, Chairman, ICICI Bank Ltd.

6. Shri S.S.Kohli, CMD, Punjab National Bank.

The terms of reference of the Group are:

1. To assess the progress made in implementation of Kapur Committee and Gupta Committee’s recommendations.
2. To suggest ways to improve credit flow to the SSI sector, particularly tiny sector and examine the issues of linkages with large corporates/producers.
3. Evaluation of methods of utilisation of deposits made by foreign banks with Small Industries Development Bank of India (SIDBI) for shortfall in their priority sector obligations.
4. To suggest appropriate institutional arrangement for enhancing the credit delivery to the sector on a timely basis and in adequate measures.
5. Further plans to extend micro finance coverage.

Comments and suggestions, if any, relating to the issues covered in the terms of reference of the Committee may please be forwarded to the Chief General Manager-in-Charge, Reserve Bank of India, Rural Planning and Credit Department, Central Office, Mumbai - 400 001, so as to reach him latest by March 1, 2004.

The Reserve Bank of India had earlier constituted an Advisory Committee on Flow of Credit to Agriculture and related activities from the banking system under the chairmanship of noted economist Prof. V.S. Vyas. The Advisory Committee, which is required to submit its report by April 2004, had also invited comments and suggestions relating to the issues being looked into by it by February 20, 2004.

Both, the Advisory Committee on Flow of Credit to Agriculture and related activities from the banking system and the Working Group on Flow of Credit to SSI Sector have been constituted in accordance with the announcement made by the Governor, Reserve Bank of India in the Mid-Term Review of the Monetary and Credit Policy for the year 2003-04.

Alpana Killawala

Chief General Manager

Press Release : 2003-2004/962