on the 21st june, 2019 bill no iii of  2018 the  micro,  small  and  medium  enterprises development  (amendment)  bill,  2018 a billto amend the micro, small and medium enterprises development act, 2006be it enacted by parialment in the sixty-ninth year of the republic of india as follows:—short title and commencement1  (i) this act may be called the micro, small and medium enterprises development(amendment) act, 20185(2) it shall come into force on such date, as the central government may, by notification in the official gazette, appoint2  in the micro, small and medium enterprises development act, 2006, after section 10, the following sections shall be inserted, namely:—insertion of new sections 10a and 10b"10a (1) every scheduled commercial bank either belonging to public sector or10 private sector, shall lend to the micro, small and medium enterprises at the rate of eight per cent per annumlending rate and limit for lending of collateral free loan(2) every micro, small or medium enterprises shall be entitled to collateral  free  loan up to rupees four crore from scheduled commercial banks10b the central government shall, from time to time, notify such incentives and concessions to increase the inflow of equity capital into micro, small and medium enterprises, as it may deem fit"incentives and concessions to increase the inflow of equity capital5 statement of objects and reasonsthe micro, small and medium enterprises development act, 2006 aims to provide for facilitating promotion and development and enhancing the competitiveness of micro, small and medium enterprises (msmes) in the country and also develop skill among employees, management and entrepreneurs, provisioning for technological upgradation, marketing assistance or infrastructure facilitieshowever, the msmes continue to face serious bottlenecks in its development, despite contributing eight per cent of the country's gdp and forty per cent of india's exports, employing about sixty five million people lack of access to adequate and timely credit at reasonable rate is the critical problem faced by this sector hence, there is an urgent need to make it compulsory by law for scheduled commercial banks, both public sector and in private sector, to provide affordable interest rates to msme sector for their capitalthe bill seeks to achieve the above objectdr t subbarami reddy annexureextract from the micro, small and medium enterprises development act, 2006    section 10 credit facilities:— the policies and practices in respect of credit to the micro, small and medium enterprises shall be progressive and such as may be specified in the guidelines or instructions issued by the reserve bank, from time to time, to ensure timely and smooth flow of credit to such enterprises, minimise the incidence of sickness among and enhance the competitiveness of such enterprises      rajya  sabha———— a billto amend the micro, small and medium etnerprises development act, 2006————(dr t subbarami reddy, mp)mgipmrnd—807rs(s3)—25-06-2019