Mumbai: RBI Governor Sanjay Malhotra on Monday said improving access to timely and adequate formal credit for MSMEs remains a key policy priority of the central bank.

As a part of the Reserve Bank of India's continued engagement with stakeholders, the governor held a meeting with select micro, small and medium enterprises (MSMEs) and representatives of MSME associations.

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In a statement, the RBI said Malhotra underscored the pivotal role of the MSME sector in India's economic landscape, contributing significantly to GDP, exports and livelihoods.

He emphasised that improving access to timely and adequate formal credit for MSMEs remains a key policy priority of the Reserve Bank.

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He also outlined several policy and regulatory measures undertaken for the sector by the central government and the Reserve Bank.

The governor encouraged MSMEs to pursue formalisation, maintain credit discipline and adopt digital payments to build their long-term resilience and competitiveness.

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During the interactive session, the participants shared their feedback and suggestions on policy issues and operational challenges related to credit flow to the MSME sector.

Deputy governors T Rabi Sankar, Swaminathan J and SC Murmu also attended the meeting. PTI