Q: What is the role of Project Review Committee (PRC)?
A : In order to oversee and guide the performance of the Project, a high level Project Review Committee comprising representation from the Government of India, World Bank, DFID UK, KfW, GTZ, BMZ, Germany and SIDBI has been constituted.

Q: What is the role of Project Advisory Group (PAG)?
A : In order to gather wider input / guidance on Policy issues and seek institutional support on key policy, legal and regulatory measures, Policy Advisory Group comprising of senior Govt. officials, Indian Banks Association has been constituted.

Q : Who are the beneficiaries under the project?
A: Indian MSMEs, Credit Information Bureau of India Ltd.(CIBIL), MSME rating Agency (SMERA), SIDBI, APSFC are some of the significant beneficiaries under the project so far.

Q: What is Risk Sharing Facility?
A : The RSF will provide risk sharing on MSME portfolios of eligible banks. By sharing the MSME credit risk of participating banks, while at the same time making participation contingent on better credit assessment and risk identification by banks, the RSF will help the participating banks build up a track record of good MSME lending, giving them the much-needed confidence and encouragement to scale-up lending to MSMEs, and to price these loans more appropriately, with sector-wide demonstration effects.

Q: Which agency is designated to provide the RSF under the Project?
A: The facility is proposed to be launched through the Credit Guarantee Fund Trust, an associate institution of SIDBI.

Q : What is Business Development Services?
A : BDS in the context of the project consists of among others (i) building the capacity of existing and potential BDS providers and financial institutions (lead banks) to serve the MSME market more effectively; (ii) facilitating networking between MSME business associations and other BDS providers and similar associations in other countries; (iii) developing linkage programs between large corporations and MSMEs, working through the major MSME business associations; (iv) developing high quality, affordable management training for local MSMEs; (v)entrepreneurship training programs to create new entrepreneurs; (vi) providing MSMEs with better access to technology, for example, through technology transfer agents/supporting dedicated institutions to facilitate dissemination of information on technology transfer and match making.

Q: How will the MSMEFDP benefit MSMEs?
A: "MSMEFDP carries the mandate to increase income and employment along with catalyzing growth and competitiveness in MSMEs in India . It addresses both demand and supply side issues concerning MSMEs by judicious provision of financial and non financial services. MSMEFDP bring along the expertise and experience of international partners in enterprise development coupled with national players. It has three components CF, RSF and TA.

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