As of October, data from the Reserve Bank of India (RBI) reveals that scheduled commercial banks have deployed Rs 23.15 lakh crore in gross bank credit to micro, small, and medium enterprises (MSMEs) under priority sector lending. October's deployment represents 15% of the total non-food credit of Rs 154 lakh crore, compared to 14.6% of Rs 128 lakh crore in the same month last year. Credit to micro and small enterprises (MSEs) saw a 24.2% growth to Rs 18.53 lakh crore, while credit to medium enterprises increased by 17.3% to Rs 4.61 lakh crore. Despite this growth, a survey by FICCI revealed challenges in collateral-free credit implementation, with banks often requiring collateral for loans, and difficulties accessing government schemes like the Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme (CGTMSE). The survey noted banks' hesitancy in providing financing to SMEs, pointing to implementation issues and limited reach of post-COVID government initiatives for MSMEs.