PHDCCI Urges RBI to Standardize Letter of Credit Rules and Increase MSME Credit Limits

The PHD Chamber of Commerce and Industry (PHDCCI) has urged the Reserve Bank of India (RBI) to enhance credit flow to micro, small, and medium enterprises (MSMEs) and address operational inconsistencies in letter of credit (LoC) handling. PHDCCI highlighted issues with banks rejecting payments despite formally waived discrepancies and called for uniform guidelines to standardize procedures. Additionally, it requested raising the MSME lending limit through non-banking financial companies (NBFCs) beyond the current Rs 20 lakh cap, citing revised MSME classification criteria.