18 July 2026 at 5:19 am
Summary
Banks are seeking clarity from the RBI regarding challenges in extending collateral-free loans up to ₹20 lakh to small businesses, as some accounts are not covered by the government guarantee scheme and many borrowers are reluctant to pay additional fees. This situation is impacting credit access for micro and small enterprises, prompting lenders to approach the government and RBI for resolution.
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