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Gujarat Chief Minister Bhupendra Patel has asked banks to improve the speed and reach of credit delivery, particularly for MSMEs, women entrepreneurs, rural artisans, small farmers and other beneficiaries at the last mile. Chairing the 190th meeting of the State Level Bankers’ Committee in Gandhinagar, Patel said the banking sector would have an important role as India works towards becoming the world’s third-largest economy. He also asked banks to use technology to process government-backed loan applications faster and expand financial support to groups covered under Gujarat’s new Industrial Policy 2026.
Gujarat Chief Minister Bhupendra Patel has called for closer coordination between banks and the state government to improve access to finance for small businesses, entrepreneurs, farmers and other beneficiaries. He made the remarks while chairing the 190th meeting of the State Level Bankers’ Committee (SLBC) in Gandhinagar.
Patel said the banking sector has an important role to play as India moves towards becoming the world’s third-largest economy. He asked banks to keep credit delivery to the last mile as a priority and ensure that eligible beneficiaries receive loans and other financial assistance without unnecessary delays.
The chief minister specifically highlighted micro, small and medium enterprises (MSMEs), women entrepreneurs, rural artisans, small farmers and other sections that depend on formal credit for their businesses and livelihoods. He also asked banks to speed up the processing of applications submitted under various government schemes and work towards covering a larger number of eligible beneficiaries.
The focus on entrepreneurs comes as Gujarat implements its Viksit Gujarat Industrial Policy 2026. The five-year policy, which took effect in June, provides support for MSMEs, startups and several categories of entrepreneurs, including women, SC/ST entrepreneurs, persons with disabilities and first-generation entrepreneurs. The policy also allows eligible businesses to choose among different forms of incentives, including capital subsidy, interest subsidy and power tariff assistance.
The policy has also introduced specific measures for startups and women-led businesses. These include sustenance support for startups, seed assistance, an additional interest subsidy for women entrepreneurs and rental assistance for eligible women-led enterprises. Startups with women co-founders are also eligible for higher sustenance support.
Against this backdrop, Patel urged bankers to make greater use of technology to provide timely loans and other financial support to entrepreneurs covered by the state’s industrial policy. The objective is to make access to formal finance easier for businesses that may otherwise face delays in obtaining credit.
Patel also said the role of banks has expanded beyond handling financial transactions and providing loans. According to him, banks are now also contributing to social and economic development and have a role in supporting the broader Viksit Bharat vision.
State Chief Secretary M K Das stressed the importance of continued coordination between the government and banking sector for Gujarat’s economic development. He also acknowledged the contribution made by banks to the state’s expanding economy.
Cybersecurity was another issue discussed at the meeting. Das asked bankers to remain alert to cyber fraud and the misuse of mule accounts. With digital banking and technology-based financial services becoming more widely used, banks have been asked to strengthen vigilance while continuing to expand access to formal banking.
Das also called for more bank branches in smaller villages to improve access to banking services. The move is aimed at ensuring that people in rural and less-served areas can access basic banking facilities without having to travel long distances.
Gujarat’s new industrial policy places industrial development alongside entrepreneurship, employment, innovation and inclusive growth. The state is targeting INR 10 lakh crore in fresh investments over the five-year policy period, while also seeking to strengthen support for MSMEs, startups and emerging industries.
Source PTI
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