In a seminar on Micro, Small and medium sized Enterprises (MSMEs) organised by Confederation of Indian Industry (CII) , KC Chakrabarty, deputy governor, RBI said that despite the global economic crisis, there is enough flow of capital within the Indian Banking System and banks were willing to grant loans for feasible projects.

Chakrabarty took charge as the deputy Governor of RBI in June 2009. He has an excellent academic record. He started his career from teaching and then moved to Bank of Baroda. He had a long career of 26 years at BoB. Before taking charge at RBI he held the post of Chairman and Managing Director at Punjab National Bank.

The deputy governor said "There is no dearth of money in the system. Banks are sitting on tonnes of funds." In response to a concern expessed by the MSME sector regarding inadequate lending by the banks, he said that the credit flow had doubled from Rs 1,27,000 crore in 2006-07 to Rs 2,57,000 crore in 2008-09.

Chakrabarty cautioned banks against being aggressive while lending. He suggested the banks to do their own self assessment before granting the loans and should not rely on credit rating agencies.

He further said that India needs a strong MSME sector with a growth rate of 10 percent for the next twenty years. There are 30 million MSMEs in the country. The SMEs have shown an average growth of 18 percent over the last five years. Around 98 percent of the production units are in the SME sector.