---
title: "U.K. Sinha Committee on MSMEs: Key Recommendations"
description: "The U.K. Sinha Committee on MSMEs, formed by the RBI in 2019, proposed key reforms for the growth of India's micro, small, and medium enterprises."
url: "https://modeldiplomat.com/learn/glossary/u-k-sinha-committee"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The U.
- K.
- Who chaired the committee and which body constituted it?
- What was the committee's most significant credit recommendation?
- How does it relate to the 2020 redefinition of MSMEs?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 2 January 2019

   Sinha Committee\*\* was an eight-member Expert Committee on Micro, Small and Medium Enterprises constituted by the Reserve Bank of India (RBI) on under the ch…

2. 1 July 2020

   The revised definition of MSMEs—integrating investment and turnover criteria and abolishing the manufacturing-services distinction—was notified in the Aatman…

## Positions at a glance

### Supporters

The U.K. Sinha Committee was an eight-member Expert Committee on Micro, Small and Medium Enterprises constituted by the Reserve Bank of India (RBI) on 2 January 2019 under the chairmanship of Uday Kotak... — corrected: under the chairmanship of Uday Kumar Sinha, the former chairman of the Securities and Exchange Board of India (SEBI). The committee was established by the RBI under its developmental and regulatory mandate following persistent concerns about credit flow to the MSME sector, which had been aggravated by the demonetisation of November 2016 and the rollout of the Goods and Services Tax (GST) in July 2017. Its formal terms of reference required it to review the existing institutional framework, study the global best practices in supporting small enterprises, and propose long-term solutions for the economic and financial sustainability of the sector. The panel submitted its report, titled "Report of the Expert Committee on Micro, Small and Medium Enterprises," to the RBI in June 2019.

### Opponents

The committee's working method proceeded through a structured diagnosis of the MSME ecosystem before issuing prescriptions. It first mapped the sector's contribution—roughly 29 percent of national gross domestic product and a substantial share of merchandise exports and non-agricultural employment—against the chronic credit gap it identified, estimated at around ₹20-25 lakh crore. It then examined the existing delivery architecture: priority sector lending norms, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the Trade Receivables Discounting System (TReDS), and the Pradhan Mantri Mudra Yojana. From this diagnosis, the committee assembled a set of recommendations spanning credit, technology, marketing, and the regulatory environment, deliberately distinguishing immediate measures from medium- and long-term structural reforms.

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Example

In June 2019, the Reserve Bank of India received the U.K. Sinha Committee report, which recommended a Rs 5,000-crore Distressed Asset Fund and doubling the MUDRA collateral-free loan cap to Rs 20 lakh.

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