InvestorQ : reserve bank of india is the apec bank which may helps enterpreneures by the means of providing instruction to various commercial banks to give loans to them justify this statement how entrepreneurs will get help in arranging the funds
abhishek Sharma made post

reserve bank of india is the apec bank which may helps enterpreneures by the means of providing instruction to various commercial banks to give loans to them justify this statement how entrepreneurs will get help in arranging the funds

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Aashna Tripathi answered.
10 months ago
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The RBI does not direct lend to the entrepreneurs. It can only instruct the banks at a policy level and cannot direct the banks to lend directly to any individual business. That is not the job of the RBI. The bank has to take the final call based on its credit assessment of the borrower. You will be aware that banks have something called the priority sector targets which is directed lending and small and medium sized entrepreneurs are part of this deal. This ensures that they get funds required. However, the final decision still rests with the credit department of the bank.

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