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Introductory
Remarks by Chairman, BCSBI
[
On May 31, 2008 on
the release of the Code of Bank’s
Commitment to MSEs by
the Hon’ble Finance Minister]
Hon’ble Finance Minister, Governor Dr.
Reddy, Chairman, IBA, Shri Rao, Ladies and Gentlemen, on behalf
of the members of the Governing Council of BCSBI, I extend to
you a warm and hearty welcome.
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BCSBI has completed two years of its
existence. Emboldened by the positive approach of banks in
implementing the Code of Bank’s Commitment to Customers,
we i.e. BCSBI & IBA have jointly taken up the task of
evolving a Code for Micro & Small Enterprises. The
Working Group members were drawn from SBI, BOI, ICICI, IBA
and RBI. The Group held discussions with Industry
Associations, SIDBI, GOI, Ministry of Small & Micro
Enterprises, RBI and experts in the field, some of whom are
present here. The BCSBI is indeed grateful to them for their
significant contribution to this effort.
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BCSBI is an institution exclusively
dedicated to the interests of the Aam Aadmi’s interface
with the banking system and the Code of Bank’s Commitment
to Customers was evolved with the ‘Aam Aadmi’ in mind.
The implementation of this Code by banks has been
encouraging and a greater degree of transparency is evident
now. It would have gladdened the late Shri M.R. Pai’s
heart to see banks voluntarily wipe out the biggest asset on
their balance-sheet, namely, the ignorance of their
customers of their own rights. This is the sea change that
has come about in the mind set of bankers.
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The Third census of Small Enterprises
conducted by the Government of India in 2003 revealed that
micro enterprises form 99.5% of the total SSI sector and
anecdotal evidence reveals that these are the ones who are
unable to reap the benefits of Government schemes because of
their inability to access bank finance. In keeping with the
objective of ensuring fair and transparent banking services
of a minimum standard to the commoner, we have evolved the
Code of Bank’s Commitment to Micro & Small Enterprises
which is the lower segment of the Industrial & services
sector in rural and urban India. The Code reflects the
positive commitment of banks to their MSE customers to
provide easy, speedy and transparent access to banking
services in their day-to-day operations and in times of
financial difficulty.
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We have still to go a long way ahead in
fully achieving a custom-centric banking system but since it
is a tripartite effort by the RBI, IBA and the BCSBI,
success is certain especially as an announcement by the Hon’ble
Finance Minister of a policy package for stepping up credit
to the MSME sector yielded a growth of 20% in the advances
by scheduled commercial banks to Small Enterprises in the
year 2005-06 - a level of growth not seen in the previous 10
years and as one headline in a daily put it “when the
Finance Minister speaks India listens”.
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May we, Sir, seek your blessings,
guidance and support as we undertake this important
initiative, and request you to kindly release the Code of
Bank’s Commitment to Micro & Small Enterprises and
address this distinguished gathering?
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