Prayagraj: Rajnikant Srivastava, State Co-ordinator of the Bharatiya Janata Party NGO Cell, stated that Prime Minister Narendra Modi’s pledge of self-reliant India, local for vocal, and indigenous products has been made the foundation for building a developed and self-reliant India by 2047. The role of small entrepreneurs, MSMEs, artisans, local producers, and ODOP-related enterprises is crucial in implementing this pledge. The banking system plays an equally important role in strengthening these enterprises.
Srivastava 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. Schemes like PMEGP aim to promote employment and self-employment by establishing new micro-enterprises.
He stated that the true objective of the schemes should not be merely to distribute loans, but rather to build a successful and sustainable enterprise. Situations often arise at the ground level where debt recovery pressure mounts before the business is fully established, production begins, a market develops, and sufficient cash flow is generated. This puts the new entrepreneur under not only financial but also psychological pressure.
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, how will it be able to repay the bank loan on time?
Srivastava stated that harsh recovery action or asset-related action against an enterprise that has not yet commenced production and business operations raises serious questions. He added that if the debt burden and recovery pressure on an entrepreneur becomes so great that they are forced to close their enterprise before the business even begins, it is contrary to the spirit of self-reliant India. This situation must be prevented from becoming akin to the “fetal killing” of economic entrepreneurship. He clarified that his intention is not to create a conflict between banks and entrepreneurs. Banks and entrepreneurs complement each other. Banks’ money will be safe only if the entrepreneur’s business thrives, production increases, employment is created, and the market develops.
Better coordination among bank officials is essential: Srivastava said that entrepreneurs’ problems often arise due to a lack of proper coordination between branch managers, regional/zonal officials, and higher-level officials. 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 practical approach are essential 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 adopt a solution-oriented approach.
