Current Affairs - Finance - Discussion

₹20 Lakh is the revised collateral-free loan limit set by the Reserve Bank of India for Micro and Small Enterprises. The earlier limit of ₹10 lakh has been doubled to enhance access to formal credit for small businesses. This step is aimed at promoting entrepreneurship, strengthening last-mile credit delivery, and supporting enterprises that face constraints in providing collateral. The decision also reflects the strong credit performance of the MSE sector, which recorded a 31% year-on-year growth, highlighting its expanding role in the economy.