The 29th Meeting of the Standing Advisory Committee on Micro, Small and Medium Enterprises, MSME, credit flow took place in Ahmedabad today. RBI Deputy Governor, Swaminathan J, highlighted the MSME sector’s crucial role in India’s economy and reaffirmed the RBI’s commitment to enhancing credit support through initiatives like the Unified Lending Interface, Account Aggregator framework, and Regulatory Sandbox. Addressing challenges such as financial literacy, information gaps, and delayed payments, he stressed the need for digital solutions, alternative credit models, and fair lending practices for MSMEs in financial distress. The committee discussed addressing the credit gap in MSMEs, cash flow-based lending, digital solutions for better credit linkage, enhancing credit guarantee schemes, and proactive revival of MSMEs in financial distress.