If entrepreneur strong, bank's money will also be safe -

Better coordination between banks, government and entrepreneurs needed

Prayagraj, 10 Oct (HS): Addressing a seminar on Role

of Banks in Self-Reliant India 2047 organized by Hindustan Yuva Utthan

Samiti, Bharatiya Janata Party NGO Cell's State Co-ordinator Rajnikant

Srivastava said that Prime Minister Narendra Modi's resolution of Self-Reliant

India, Local for Vocal and Swadeshi has been made the basis for building a

developed and self-reliant India by the year 2047. Small entrepreneurs, MSMEs, artisans,

local producers and ODOP-related enterprises have an important role in

realizing this goal. The role of the banking system is equally important in

strengthening these enterprises.

He said that the central and state governments are striving

to provide financial assistance to youth, small entrepreneurs, artisans, and

local producers through the Pradhan Mantri Mudra Yojana, the Prime Minister's

Employment Generation Programme (PMEGP), credit guarantee schemes, ODOP, and

other MSME-focused schemes. The true objective of the schemes should not be

merely disbursing loans, but rather creating successful, sustainable, and

employment-generating enterprises.

'Consider the entrepreneur as the future employer, not a

loan account': Shrivastava said that situations often arise at the ground level

where loan recovery pressure increases even before the business is fully

established, production begins, the market develops, and sufficient cash flow

is generated. This puts new entrepreneurs under financial pressure and poses

challenges to continuing their business. Banks should recover loans only after

the entrepreneur's business is operational and inaugurated. They should not

exert pressure for recovery before the business has even begun. How will

entrepreneurs set up businesses in Uttar Pradesh if bank employees and

officials conspire to defame the government? Similar incidents have been

reported in Indian Bank and other banks. The concerned officials and employees

will be informed. Those who defame the Modi and Yogi governments and harass

entrepreneurs are being identified. Citizens are also urged to bring such

incidents to their attention.

He said that while it's important to keep the bank's money

safe, it's equally important to keep the business of the entrepreneur taking

the loan safe. If a new venture doesn't get enough opportunity to establish

itself in the market, how will it be able to repay the bank loan on time? He

clarified that instead of pitting banks and entrepreneurs against each other,

they need to be considered partners and complement each other. Bank funds will

only be safe if the entrepreneur's business thrives, production increases,

employment is created, and the market develops.

Better coordination among bank officials is essential: Shrivastava

said that oftentimes, lack of adequate coordination between branch managers,

regional/zonal officials, and higher-level officials exacerbates entrepreneurs'

problems. Receiving different guidance from different levels on the same issue

leaves entrepreneurs confused, impacting both their time and business. He said

that coordination, communication, courtesy, and a solution-oriented approach

need to be strengthened in the banking system. Entrepreneurs should strictly

adhere to bank regulations, documents, and financial discipline, but bank

officials are also expected to understand the entrepreneur's actual situation

and seek solutions within the rules.

'The banking system should understand the challenge of

building a business while also providing loans': He said that in ODOP, MSME,

and indigenously manufactured enterprises, the initial period requires time to

establish machinery, buildings, raw materials, staff, marketing, and market

preparation. Therefore, the loan structure should be determined based on the

nature of the project and expected cash flow. Even after approving the loan,

the bank should develop a system to monitor the progress of the venture and

provide guidance as needed. This will reduce the bank's risk and increase the

entrepreneur's chances of success.

Key demands from the government and RBI: Rajnikant

Srivastava said that the Central Government and the State Government are

continuously providing financial assistance to the startups and MSMEs so that

the entrepreneurs and the banks can benefit. He urged the Central Government

and the Reserve Bank of India that—

1. For new enterprises related to ODOP, MSME and indigenous

production, practical moratorium and repayment arrangements should be

considered as per the nature of the project.

2. Clear and practical guidelines should be formulated to

reduce unnecessary recovery pressure on small entrepreneurs before they have

sufficient cash flow.

3. The process of restructuring/re-scheduling should be made

simple, transparent and time-bound for enterprises facing genuine difficulties

but having potential.

4. Special banking support or nodal arrangements should be

developed for MSME and ODOP entrepreneurs in each district/region.

5. Better coordination should be ensured between the branch,

regional office and zonal office.

6. An effective and timely grievance redressal mechanism

should be created for the complaints of entrepreneurs.

7. Entrepreneurs receiving loans under government schemes

should also be provided assistance in marketing, digital sales, training,

branding and market linkages.

8. It should be reviewed whether the benefits of Atmanirbhar

Bharat, ODOP, MSME and Self-Employment schemes are actually reaching the

entrepreneurs or are limited only to loan distribution figures.

Call for cooperation from social workers and volunteers: Shrivastava

said that building a self-reliant India is not just the responsibility of the

government or the banking system. The cooperation of NGOs, volunteers, social

workers, legal professionals, and entrepreneurs also plays an important role.

He said that there are many volunteers and social workers in

society who are providing guidance and problem-solving assistance to needy

entrepreneurs in banking, financial, and legal matters. All such NGO

volunteers, social workers, and legal colleagues are urged to come forward and

play their part in building a self-reliant India. “Any social worker, volunteer

or person associated with the legal field who is helping people in solving

problems related to banking and entrepreneurship, please send your name, mobile

number and the name of the person/entrepreneur to whom you are providing

assistance to mobile number 9415970989,” he added. He said that efforts will be

made to honour and encourage such associates in the upcoming programme, so that

more and more people in the society come forward to help needy entrepreneurs.

'If the trust between banks and entrepreneurs is strong,

then self-reliant India will be strong': Srivastava said the ultimate objective of the government's

schemes is to strengthen employment, production, the local economy, and

self-reliance. If a youth or small entrepreneur takes a loan from a bank to set

up a business, they should not be considered merely a loan account,

but a future employer and partner in economic development.

He said, The stronger the trust between the bank and

the entrepreneur, the safer the bank's money will be. Strengthening the banking

system is possible only by strengthening the entrepreneur.

He said that the dream of a developed and self-reliant India

by 2047 will be realized not only by large companies, but also by small

entrepreneurs, artisans, traders, and local producers in villages, towns, and

districts. Therefore, the banking system will also have to play a partner role

with these entrepreneurs. He said that the need is not for banks versus

entrepreneurs, but for trust, dialogue, and cooperation between banks and

entrepreneurs. If the government, banks, entrepreneurs, and philanthropists

work together, it will strengthen not only loan security but also employment,

local production, and economic self-reliance, and the resolve for a

self-reliant India by 2047 will be truly realized.

Hindusthan Samachar / Abhishek Awasthi