National policy for MSME to come out this year
The Dollar Business Bureau Ministry of Micro Small and Medium Enterprises (MSME) Minister Kalraj Mishra on Wednesday said the national policy for MSME, which is envisaged to boost the overall growth of the sector, will come out by the end of this year. Highlighting the two-year achievements of the MSME ministry, Mishra said his government has formed a one man committee, to complete all the recommendations by October 31, 2016. Mishra praised Prime Minister Narendra Modi for taking up schemes like MUDRA and Stand up India, which has significantly increased the number of MSMEs in the country. “The major achievement of the ministry is to come up with a Scheme of Revival and Rehabilitation of MSMEs. The scheme will start benefitting the MSMEs ...
Stand Up India, to empower SCs, STs & women
The Dollar Business Bureau Prime Minister Narendra Modi launched the ‘Stand Up India’ initiative on Tuesday in Noida to encourage entrepreneurship among women, Scheduled Caste (SC), Scheduled Tribe (ST) communities, by facilitating loans for them ranging from Rs.10 lakh to Rs.1 crore. Under the initiative, the target is to create 2.5 lakh entrepreneurs all over the country, in which, 1.25 lakh branches of banks will provide loans of up to Rs.1 crore to the SC & ST communities and women. Each bank branch will have to give two loans for setting up a new enterprise, without any collateral. The Stand Up India initiative is aimed to empower every citizen of India and make them capable of standing on their feet. “For the ...
NBFC-Micro Finance firms to play a key role in financial inclusion
The Dollar Business Bureau By increasing the income cap for the eligibility of a micro-loan borrower as well as the permissible total borrower indebtedness, the Reserve Bank of India (RBI) has indicated its strong support to non-banking financial companies – microfinance institutions ‘(NBFC-MFIs)’ role in financial inclusion. The new move is likely to significantly increase the potential market size without affecting borrowers’ servicing ability and improve operating efficiency of NBFC-MFIs, said a report by the rating agency, India Ratings & Research (Ind-Ra). This move could also be a precursor to expanding NBFC-MFIs’ role in financial inclusion if they maintain and strengthen their underwriting standards. Also, existing MFIs may be tempted to slow down their branch expansion in non-south states, ...
PM asks bankers to adapt micro finance models to local requirements
The Dollar Business Bureau The Prime Minister, Narendra Modi has asked the bankers to study the successful micro finance models being followed in other parts of the world and try to adapt them according to the local requirements. Speaking after the launch of the Pradhan Mantri Mudra Yojana aimed at funding the small entrepreneurs of India, Modi said that while there are a number of facilities provided for the large industries in India, there is a need to focus on 5 crore 75 lakh self-employed people who use funds of Rs 11 lakh crore, with an average per unit debt of merely Rs 17,000 to employ 12 crore Indians, reported a PIB release. The Prime Minister said that MUDRA ...
