Amaravati: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has extended its gratitude to the Reserve Bank of India (RBI) and the Central Government for establishing a new RBI Regional Office in Vijayawada.
The move, hailed as a milestone for the State’s financial growth, is expected to enhance policy outreach and banking services in the region.
In a letter addressed to RBI Governor Sanjay Malhotra, AP Chambers welcomed the appointment of Attah Omar Basheer as the Regional Director and expressed confidence in his leadership.
The Chamber’s President, Potluri Bhaskara Rao and General Secretary, B Raja Sekhar, described the development as a “vote of confidence” in Andhra Pradesh’s economic prospects and a strong signal of the RBI’s focus on decentralised governance and inclusive development.
Highlighting the importance of a robust MSME sector for the State’s economy, AP Chambers submitted a set of strategic recommendations aimed at improving credit access and financial support for small businesses.
These include expanding the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), allowing agricultural land to be accepted as loan collateral, capping SME interest rates at 9 per cent and extending the NPA recognition period from 90 to 180 days.
The Chamber also called for a permanent framework for MSME loan restructuring and a reduction in reliance on traditional credit ratings.
Further, the Chamber urged the RBI to mandate the participation of large corporates and public sector undertakings (PSUs) on the Trade Receivables Discounting System (TReDS) to improve liquidity for MSMEs.
It advocated for the promotion of digital lending, alternate credit scoring models and enhanced financial literacy, particularly for women-led, SC/ST-owned and rural enterprises.
To strengthen engagement, the Federation proposed regular RBI ‘Town Hall’ meetings to directly address industry concerns. It also pledged active support in promoting financial literacy initiatives in partnership with the newly established regional office.
