P.D. Sharma, president of apex chamber, told Deputy Governor that credit to SME sector was not coming as per requirement as this sector was treated as a high-risk sector. After Satyam saga, the distinction should go and the credit facility to SME sector should be liberalised as per the actual requirement, he contended.

Rate of interest being charged from SME sector is the highest of all the borrowers. SME sector satisfies the job creation needs of the country and controls about 40% of its exports, he added. In the backdrop of these factors, this sector is getting a step-motherly treatment.

The government is shielding steel producing industry to maintain steel prices which increases the cost of construction for house makers, alleged Sharma.

T Banks are now forcing industrial units which have a limit of Rs 5 crore or more to get their unit rated from credit rating company. This is undue burden on the unit, feel the industrialists.

Sharma explained to the Deputy Governor that in the foreign countries some service charges were levied but the rate of interest in all the comparable countries was very low. In our country, banks’ interest rate particularly for small scale industry was the highest and when service charges were levied, which increased the effective rate of interest by 2 to 3%.