The credit authorization scheme: some problem areas in Its implementation

Abstract

This paper seeks to define and discuss same of the problem areas in the effective implementation of the Credit Authorisation Scheme operated by the Reserve Bank of India. These are : (a) effective communication of the objectives of the scheme to the borrower groups; (b) delays in decision-making on loan proposals submitted under the scheme; (c) development of an acceptable standard or basis for determining genuine working capital requirements of the borrowers; and (d) evolving a follow-up system that will effectively accomplish the objectives of the scheme.