Public Sector Banks (PSBs) lead in the delivery of loan service in many respects. PSBs have taken the initiative for hassle-free and expeditious in principle approval for loans to MSMEs in contactless digital mode through the psbloansin59minutes.com platform, which private sector banks have subsequently on-boarded. PSBs also lead in lending in several loan categories, such as loans for education and for priority sector agriculture and allied activities, in which PSBs account for 96% (as on 30.9.2018, as per RBI data) and 76% (as on 31.3.2019, as per RBI data) respectively of lending by Scheduled Commercial Banks. Further, PSBs have led in extending credit through the overdraft facility available under Pradhan Mantri Jan Dhan Yojana (PMJDY) to accountholders having satisfactory conduct of account, accounting for over 99.8% (including through Regional Rural Banks, which are sponsored by PSBs) of the total overdraft amount availed of as on 14.6.2019. In addition, all PSBs have on-boarded the Trade Receivable electronic Discounting System (TReDs) platform, enabling online discounting of trade receivables by MSMEs for faster realisation against the receivables.

This was stated by the Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman in a written reply to a question in Lok Sabha today.

Public sector bank leadership enables faster MSME credit access via digital loan approvals and priority sector lending focus. Public Sector Banks lead in delivering rapid MSME loan approvals through the contactless digital platform psbloansin59minutes.com, and dominate lending in education and priority sector agriculture; they are principal providers of overdraft credit under PMJDY and have onboarded the Trade Receivable electronic Discounting System (TReDs) to enable online discounting of MSME receivables for faster realisation.