Microfinance Focus, January 4, 2012: The Reserve Bank of India (RBI) has today issued a notice to all scheduled commercial banks advising them to devise a system of giving acknowledgement for receipt of all loan applications.

RBI has received complaints from the industry associations that banks are not acknowledging loan applications. “It is therefore, reiterated that the banks should mandatorily acknowledge all loan applications, submitted manually or online, by their MSME borrowers”, RBI said.

Banks are also asked to ensure that a running serial number is recorded on the application form as well as on the acknowledgement receipt.

Earlier the banks were also advised to put in place a Central Registration of loan applications and to use same technology for online submission of loan applications as also for online tracking of loan applications as recommended by the Working Group on Rehabilitation of sick MSME Units.