SBI Chief Calls for Institution to Track Fund Use by MSMEs

State Bank of India chairman C.S. Setty on Friday pitched for the creation of a market infrastructure institution to track the end-use of funds borrowed or raised as equity by small businesses.

- Press Trust of India

MUMBAI:

A "viable mechanism" is needed to ensure that the funds are used for the intended purposes, Setty said in remarks which come amid heightened concerns on the subject of end-use of funds.

"We will require a viable mechanism to track the actual use of these funds to ensure that the funds are utilized for the purposes they have been raised for, probably through the establishment of a separate market infrastructure institution with powers to track the use of borrowed funds or the funds raised through equities," Setty said.