TestCloud
Prep • Practice • Perform
Log In

NSIC Signs MoUs with Private Banks to Enhance MSME Credit Access.

Banking & Finance | Dated: 19 Aug 2025

The National Small Industries Corporation Limited (NSIC), under the Ministry of Micro, Small and Medium Enterprises (MoMSME), recently signed Memoranda of Understanding (MoUs) with five private banks to strengthen credit availability, last-mile connectivity, and growth support for MSMEs under its MSME Credit Facilitation Programme.

🎯 Key Highlights:

  • - The MoUs were signed in August 2025 by NSIC with private sector banks including Axis Bank, Dhanlaxmi Bank, Karnataka Bank, AU Small Finance Bank, and IndusInd Bank.
  • - The initiative comes under the MSME Credit Facilitation Programme, designed to streamline financing and support the formalization of micro, small, and medium enterprises.
  • - The MoUs were exchanged by Gaurav Gulati, Director (Finance) of NSIC, in the presence of Dr. S. S. Acharya, Chairman and Managing Director (CMD) of NSIC, along with senior representatives of the participating banks. The event highlighted the collaboration between NSIC and banks to boost credit access for MSMEs.

💡 Other Important Facts:

  • (i) The signing ceremony was also attended by Union Minister Jitan Ram Manjhi (MoMSME) and S.C.L. Das, Secretary of MoMSME, showcasing the government’s commitment to strengthening the credit ecosystem for MSMEs in India.
  • (ii) Each participating bank brings regional strength: Axis Bank (Mumbai), Dhanlaxmi Bank (Thrissur), Karnataka Bank (Mangalore), AU Small Finance Bank (Jaipur), and IndusInd Bank (Mumbai). Their collaboration with NSIC aims to increase formal financial inclusion for small enterprises across states.
  • (iii) The primary objective of the MoUs is to enhance MSME credit access, provide last-mile financing, and accelerate sector growth and formalization. By linking MSMEs with formal banking systems, this initiative will help small businesses expand their outreach, reduce credit gaps, and contribute to India’s economic development.

📚 Test Your Knowledge:

Which organisation recently signed MoUs with private banks to enhance credit access for MSMEs?

Correct Answer: NSIC

🚀 Quick Recap:

About National Small Industries Corporation Limited (NSIC)

  • Chairman and Managing Director (CMD) : Dr. S. S. Acharya
  • Headquarters: New Delhi