MSME | Business Upturn

Unlocking MSME Credit Growth in India Requires a Stronger Focus on Rural and Tier 2-3 Markets

Riddhima Jain — Mon, 02 Jun 2025 11:21:14 +0000

India’s MSME sector continues to face a significant credit gap of ₹30 lakh crore, despite an overall increase in formal credit supply, as highlighted in SIDBI’s latest report ‘Understanding Indian MSME Sector: Progress and Challenges’.

The rural-urban divide is particularly stark. MSMEs in rural regions face a credit gap of 32%, compared to 20% in urban areas. This shortfall is rooted in factors such as sparse lender presence, limited industrial infrastructure, and information asymmetry. Meanwhile, women-led MSMEs face an even steeper 35% gap, often turning to informal sources due to barriers in accessing structured financial support. Despite this, MSMEs are showing digital readiness: 90% now accept digital payments, although only 18% have accessed digital lending platforms pointing to a latent but significant opportunity for growth in digital credit.

There’s a pressing need to refocus the lens on Bharat — the tier 2, tier 3 cities and rural heartlands that form the roots of India’s economic tree. These regions are no longer just untapped markets; they are drivers of inclusive growth waiting to be empowered.

“While the expansive branches are our urban centers, the roots: India’s tier 2, tier 3 cities, and rural belts hold untapped potential. As businesses invest in these regions, they don’t just cultivate markets; they cultivate hope, opportunity, and resilience,” said Pankaj Gupta, Chief Business Officer, Godrej Capital. By nurturing these hidden economic engines with tailored credit solutions and strong on-ground partnerships, the industry can shift from addressing gaps to unlocking enduring growth.

As the ecosystem evolves, bridging the MSME credit gap will depend on how effectively financial institutions, fintechs, and policymakers collaborate to design solutions that are not just accessible, but truly inclusive. The next phase of India’s growth story will be written in its smallest towns and remotest corners — provided the financial roots grow deep and wide.

Govt eyes relaxation of stringent 45-Day MSME payment rule in upcoming budget

News Desk — Tue, 30 Apr 2024 07:57:46 +0000

In an exclusive revelation, Moneycontrol has learned that the government is actively considering relaxing the controversial 45-day payment rule for Micro, Small, and Medium Enterprises (MSMEs) in the upcoming July Budget. The stringent regulation, which came into effect on April 1, 2023, mandates larger corporations to pay their MSME suppliers within 45 days or face penalties. However, it has faced widespread criticism from industry quarters for its severity and fears of disrupting established business practices.

According to sources privy to the discussions, the options being explored include extending the payment window to 60 days or revoking the recent amendment to the Income Tax Act that levied higher taxes for late MSME payments. The MSME Ministry has held discussions with the Finance Ministry and is likely to submit a formal proposal seeking a resolution amidst the ongoing flux.

While the 45-day payment rule has been a part of the MSME Development Act for several years, it remained largely ineffective until the interim Budget 2024 aligned it with the Income Tax Act, providing it with teeth. However, concerns have mounted over the stringency of the rule, with some businesses reportedly considering asking their MSME suppliers to relinquish their registration to continue doing business without the constraints of the 45-day window.

As the nation eagerly awaits the July Budget, the government’s decision on the 45-day payment rule for MSMEs is being closely watched, given its potential far-reaching implications for India’s crucial MSME sector, which accounts for a significant portion of the country’s economic output and employment.

Important schemes by MSMEs which can be proved beneficial for the entrepreneurs

Dixita Hazarika — Wed, 23 Aug 2023 10:28:41 +0000

The MSMEs (Ministry of Micro, Small and Medium Enterprises) which is the apex executive body, formulates and administers rules, regulations and laws relating to micro, small and medium enterprises in India. In fact, they are recognized globally as the drivers of economic growth and promoters of equitable development. Not only this, in most economies they account for more than 90 per cent of all businesses and are also credited with the greatest employment growth.

Now, you might have heard about a lot of schemes provided by the government to various sectors for their welfare. But, do you know about schemes that are important for the MSMEs? Well, in this article, we are going to talk about 8 such important schemes provided for the MSMEs.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) –

The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. It gives a guarantee cover of up to 75% of the credit facility up to Rs.50 lakh (85% for loans up to Rs. 5 lakh provided to micro enterprises, 80% for MSEs owned/ operated by women and all loans to NER) with a uniform guarantee at 50% of the credit exposure above Rs.50 lakh and up to Rs.100 lakh.

Prime Minister’s Employment Generation Programme (PMEGP) –

The objective of this scheme is to generate continuous and sustainable employment opportunities in Rural and Urban areas of the country, to provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises and to facilitate participation of financial institutions for higher credit flow to micro sector. It provides credits upto Rs 50 Lakh for launch of new manufacturing unit and Rs 20 Lakh to new service units.

Raising and Accelerating MSME Performance” (RAMP) scheme –

RAMP is a World Bank assisted Central Sector Scheme, which supports various CoronaVirus Disease 2019 (Covid) Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises (MoMSME). It aims at Improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships and addressing issues of delayed payments and greening of MSMEs.

Pradhan Mantri MUDRA Yojana (PMMY) –

On April 8 2015, the Hon’ble Prime Minister launched the Pradhan Mantri MUDRA Yojana (PMMY) is a scheme to provide loans up to Rs 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.

Stand Up India Scheme –

The Stand Up India Scheme was launched by Prime Minister Narendra Modi on 15th August, 2015. This scheme seeks to leverage the institutional credit structure for reaching out to the Scheduled Caste, Scheduled Tribe and Women entrepreneurs to enable them to participate in the nation’s economic growth. The objective of the scheme is to facilitate bank loans between Rs 10 lakh to Rs 100 lakh to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one Woman borrower per bank branch of all scheduled commercial banks for setting up a greenfield enterprise.

PSB Loans in 59 Minutes –

PSBloansin59minutes.com is an online marketplace that enables MSMEs and self-employed professionals to apply for business loans and Mudra loan at an interest rate of 8.50% p.a. onwards. Under this scheme, individuals and enterprises can get loan approval from Rs. 10 Lakh to Rs. 5 Crore under 59 minutes from Public and Private Sector Banks (PSBs), NBFCs, etc.

Trade Receivables Discounting System (TReDS)

TReDS is an online platform designed for facilitating the MSMEs to unlock working capital by conversion of their receivables into cash. TReDS gives capital access to the credit-starved small businesses in India.

Self Reliant India (SRI) Fund

The Self Reliant India (SRI) Fund was created on 13th May 2020, by the Prime Minister and Finance Minister of India. It was created for addressing severe shortage being faced by MSMEs in securing growth capital. The objectives of this scheme are to enhance equity/equity like financing to MSMEs, support faster growth of MSME Businesses and thereby igniting the economy and creating employment opportunities; to supporte enterprises which have the potential for graduating beyond the MSME bracket and become National/ International Champions and to support MSMEs which help to make India self-reliant by producing relevant technologies, goods and services.

MSME sector an important pillar of Indian economy : WBSIDCL MD

United News of India (UNI) — Wed, 03 May 2023 13:33:19 +0000

Kolkata, May 3: The MSME sector is an important pillar of the Indian economy, contributing significantly to job creations and economic growth, according to Nikhil Nirmal, MD, WBSIDCL.

Speaking at an event titled “Empowering MSME’s of West Bengal”, hosted by Indian Chamber of Commerce in collaboration with West Bengal Small Industries Development Corporation Ltd (WBSIDCL), on Wednesday, Nirmal said, ” According to Nikhil Nirmal IAS, “The MSME sector is an important pillar of the Indian economy, contributing significantly to job creations and economic growth. It is crucial to empower MSME’s and provide them with the assistance and resources they require to develop and prosper. The initiative is a step towards achieving the goal. It aims to strengthen the state’s micro, small, and medium enterprises (MSMEs). ”

” Since its inception under the MSME&T department, the agency has created 51 industrial parks and commercial estates across the state, offering infrastructural and marketing support to MSMEs. The estates offer land and sheds at reduced prices for the establishment of companies with modern facilities, resulting in a large number of employment opportunities in the state. The business also assists roughly 200 MSME suppliers with marketing and supplies operating items to government buildings. During the pandemic, WBSIDCL took steps to vaccinate the workforce, meet urgent supply needs in government hospitals, and provide economic relief to MSMEs, ” he added.

” We leverage cutting-edge digital technology to revive MSME involvement and increase transparency in their operations. We have implemented land allocation software to make conducting business easier. All of the corporation’s activities have been recognised at the state and national levels, for which we have been nominated for and received various awards. The organisation has won three honours at the 9th edition of the Governance Now PSU honours. We have worked with SBI to assist MSMEs in obtaining loans for investment, ” he stated.

Dr. Rajeev Singh, Director General, Indian Chamber of Commerce, delivered the Theme Address at the inaugural session and stated, ” The MSME sector plays an important role in the Indian economy’s growth, and it is important to promote and empower MSMEs in order to drive growth in the economy and generate opportunities. This initiative is a commendable effort. The MSME department and WBSIDCL have done this programme to help MSMEs in the state. West Bengal’s ecosystem has aided MSMEs in growing and expanding beyond the state’s borders. The theme is empowering MSMEs and honouring their accomplishments by honouring those who perform outstanding job. I recognise MSMEs’ limitations, such as limited resources and regulatory issues, but also their contributions to wealth creation and employment. There is an immense need to prepare for future difficulties such as emerging technologies and changing markets, as well as to focus on competitiveness via quality, technology adoption, market links, and branding. I propose expanding access to common resources such as testing and R&D laboratories, and I believe the government can help by providing land and subsidising equipment.”

Meghnath De, Special Secretary, MSME&T, stated, ” We are committed to providing the essential support to enable the development of the MSME sector, which is essential for the growth of the Indian economy. We are glad to collaborate with WBSIDCL to assist MSMEs in West Bengal in reaching their full potential. It is necessary to report progress and gather comments on the department’s cluster of initiatives for inclusive and sustainable growth. The department executes programmes and initiatives through several MSME agencies, including WBSIDCL, SME and Textile directorates, Vishwa Bangla Marketing Corporation, and others. MSMEs are receiving considerable support, including hand-holding, financial clinics, and connection with bankers in order to produce bank loans. Three MSME facilitation councils are established to resolve late payments and skill development activities. Without going into further depth about the other programmes, I’d want to concentrate on the infrastructure development projects and schemes pertinent to WBSIDCL and the seminar’s setting. In recent years, the department has been successful in producing over Rs. 100,000 crore in bank loans for MSMEs in West Bengal.”
Jay Prakash Mazumdar, Director, WBSIDCL, addressed the audience and emphasized the government’s efforts to support the MSME sector in West Bengal.

He stated, ” The MSME sector is the backbone of our economy, and the government is dedicated to providing all necessary assistance and resources to assist them in growing and prospering. I am happy to encourage MSMEs and recognise their unique geographical location, which has historically attracted enterprises and industries. However, due to a hostile political environment and the departure of large industries, small and medium-sized businesses have struggled. A new administration was elected in 2011 with the goal of advancing the interests of small, medium, and micro-industries, and they created the land bank theory and system to address the land problem. The MOU and tie-up with SBI will further promote the growth of small and medium-sized businesses in the state, which we hope will help them regain their position as a major industrial hub.”

According to V. Teja Deepak, Executive Director & OSD, WBSIDCL, “The event provided a platform for MSME’s to network, share their experiences, and learn about new advancements and prospects in their sector. We are dedicated to aiding the expansion of MSMEs in West Bengal, and this event was a significant step in that direction. WBSIDCL created this event, the first of its sort in 70 years, with the most MSMEs in West Bengal. The state’s imaginative policies create jobs and provide a favourable business climate. Various associations and directors collaborated, and representatives from the Joint Director MSME DFO and SBI supported the event. The Vice Chairman is deeply committed to the growth of MSMEs and WBSIDCL.”
According to Musaraf Hussen, Vice-Chairman WBSIDCL, “This event was a great opportunity for MSME’s to come together, network and share their experiences. These enterprises are often lower in size and revenue than huge corporations, yet they are sometimes regarded as the economic backbone due to their considerable contribution to employment and innovation. We hope that by bringing MSMEs together, we will provide them with a great chance to network and cooperate, exchanging information and experiences that may help them overcome problems and build their businesses. Networking is a critical component of any entrepreneur’s success, and events like these may be extremely valuable to anyone wishing to grow their professional network. We are devoted as an association to assisting the growth of MSMEs in West Bengal. It’s essential to provide the necessary resources and support for these businesses to thrive. This could include financial assistance, access to training and education, marketing and promotional assistance, and other services that can assist MSMEs in overcoming common growth and success barriers. Overall, events like these are essential for the MSME community because they show a dedication to the development and growth of these vital enterprises. We can help establish a more strong and sustainable economy in West Bengal and beyond by providing the assistance and resources needed for MSMEs to succeed.”

MSME edutech startup Rocket Skills raises Rs. 2.2 crore as pre-seed funding

Vandana Nampoothiri — Thu, 05 Aug 2021 05:44:49 +0000

Edutech startup Rocket Skills, along with Better Capital, First Cheque, and Titan Capital raised Rs. 2.2 crore as pre-seed funding, LiveMint reported.

Investors like Harpreet Singh Grover (founder, Co-cubes), Aprameya Radhakrishna (founder, Taxi for Sure and Koo), Abhinav Jain (founder, Shop101) and, Pravin Jadhav (ex-CEO Paytm Money, founder Raise) also participated in the funding.

The proceedings from the funding will be used for improving their product offerings and expanding the program to other sectors.

“Rocket Skills is on a mission to help people start their small business and by bridging the knowledge and accessibility gap in an affordable manner. We are delighted by our investor’s faith in achieving this goal as we embark on our quest to create millions of new entrepreneurs in the country.” Mohit Jain, co-founder, and CEO of the company told LiveMint.

The first of its kind startup was founded in 2002 by Mohit Jain and Vibhu Bahuguna. Rocket Skills primarily focus on micro, small and medium-sized enterprises (MSMEs). It aims to help budding entrepreneurs and small-scale businesses with the resources needed to start a business.

The company also aims at building the next generation of entrepreneurs through a variety of courses and mentorship programs.

According to LiveMint, through this new platform, Rocket Skills is addressing the gap between the growth potential of the MSME sector and the lack of infrastructure in the country. By building a tight-knit community of entrepreneurs, the company is helping businesses become profitable and contributing towards the promotion of inclusive growth.

Insolvency and Bankruptcy Bill enables an efficient insolvency resolution framework for MSMEs: Nirmala Sithraman

Vandana Nampoothiri — Wed, 04 Aug 2021 09:38:01 +0000

Union Finance Minister Nirmala Sithraman on Wednesday said that Insolvency and Bankruptcy Code (Amendment) Bill, 2021 enables “an efficient alternative insolvency resolution framework for MSMEs.”

In a series of tweets, Sithraman explained the benefits and salient features of the Insolvency bill.

“Salient features of the Bill include pre-pack for MSMEs which blends elements & virtues of both formal and informal insolvency proceedings,” she said in the tweet.

“Other features of the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 include guidance and oversight of the resolution professional – Finality of the process, with judicial approval. A process that offers flexibility – Quicker, cost-effective, and value-maximizing outcomes for all stakeholders, ” she added.

According to the tweets, the entire process will only take 120 days. There will be a minimum threshold default of Rs. 10 lakh for the initiation of the pre-pack insolvency resolution process.

The initiation will start only with the consent of 66% of unrelated financial creditors and the special majority of shareholders.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 was passed by Rajya Sabha on August 3. The bill provides for a pre-packaged insolvency resolution mechanism for micro, small and medium enterprises (MSMEs).

After moving the bill for consideration, Finance Minister Nirmala Sitharaman said “this bill has been brought keeping in mind the situation in which MSMEs require a lot of help post the pandemic..we are increasing the threshold and coming up with a pre-pack.”

CEO of Union Bank of India: restructures loans worth Rs 13,000 crore, follows resolution framework by RBI

Aayushi Singh — Thu, 29 Jul 2021 15:15:15 +0000

On July 29, the Union Bank of India, which is the fourth-largest public sector bank in the country, had said that it had so far restructured the loans worth Rs 15,927 crore under the two resolution frameworks announced by the Reserve Bank of India.

Rajkiran Rai G, MD, and CEO of the Union Bank said that a large piece of the restructured accounts was from the retail segment. He added on saying that under the resolution framework 1.0, the lender had restructured accounts worth Rs 11,965 crores, out of which Rs 3,702 crore were from the personal loans segment, Rs 2,427 crore were from the micro, small and medium enterprises segment and Rs 5,836 crore were from the large corporates.

Till June 30, 2021, the total recast amount was Rs 3,962 crore under the resolution framework. The scheme would be open for three more months. In the second round of the recast, the personal loans accounted for Rs 2,855 crore, and from the MSME’s over Rs 954 crore came, the rest came from agriculture. Under the resolution framework, 2.0 announced on May 5, 2021, large corporates were not eligible for the recast.

Rajkiran Rai said that they have expected that retail and MSME would be put together, and restructuring worth Rs 2,000 crore might occur in the second quarter.

On August 6, 2020, the first resolution framework was issued and was applied to all the categories of borrowers affected by the COVID-related stress.

Slippages worth Rs 7,049 crore were reported by Union Bank in Q1FY22, out of which 45 per cent was from the MSME segment. 15 per cent of the total slippages were from Retail which was worth Rs 1,078 crores. Mr. Rai said that the stress was mainly due to COVID-19 as the EMI payments had been affected, and the stress in retail was already covered in the June quarter and there was not much in the September quarter.

The CEO had mentioned that the bank was confident that stress would get lower with the aid of restructuring and the facilities extended under the emergency credit line guarantee scheme (ECLGS). In FY22, the Union Bank has expected recoveries and upgrades worth Rs 13,000 crore. The recoveries and upgrades in Q1 were over Rs 4,300 crore.

Need a Loan for a Small Business? 8 Things you should know beforehand

News Desk — Mon, 15 Mar 2021 19:17:17 +0000

In India, micro-small-medium enterprises (MSMEs) are the lifeline of the economy. These industries are thriving in India because of the enormous demand and growth prospects of the world’s fastest growing economy. MSMEs provide work opportunities for skilled labour. But seeking loan for small business has never been a smooth ride. Therefore, the Indian government has formulated the Micro, Small and Medium Enterprises Creation (MSMED) Act, 2006, describing small enterprises as a business engaged in the manufacturing, trading or services sectors. But this act has been revised now.

As per the latest definition of MSMEs, micro units can have investments up to Rs 1 crore and a turnover of less than Rs 5 crore. The investment limit has been raised from Rs 5 crore to Rs 10 crore for the small units with less than 50 crore turnover. The enterprises with investments up to Rs 20 crore and a turnover of less than Rs 100 crore will now be called medium units. Earlier the MSMEs were defined based on the investment, but now they also include the company’s turnover.

Loans for Small Business: Why are they necessary?

The backbone of every company’s success is finance, and this is particularly true for small businesses. In order to purchase equipment, refill inventory, extend operations and increase turnover small businesses need working capital. These days, there are tailor-made loans for small business owners known as MSME loans. They are preferred most amongst various other funding options available for securing a loan for small business.

However, You Should Keep in Mind these Points Before You Apply for a MSME Loan for Small Business:

It is of utmost importance to get your MSME registered. You can fill out an online registration form under the Udyam Registration system (https://udyamregistration.gov.in/) to get your MSME registry completed. Registration for small business is quick, and you do not have to pay any amount. After the document verification e, you will obtain the certificate on your registered email id.
Obtain a Business Registration document per your type of business, for example, Shops & Establishment Certificate, FSSAI, Pollution Control NOC, Partnership Deed, etc.
Cash flow is another important aspect that cannot be ignored.

What is the cash flow?

A cash flow is a measure of how much money you have in hand to repay a loan. It is typically the first thing lenders look for when assessing the company’s financial health. A crucial parameter that most lenders can’t afford to ignore is inadequate cash flow. Therefore, deciding whether you can afford a loan is the first thing you should think about.

Review your Credit score (CIBIL) score before making an application of a loan for a small business. One of the instruments lenders use to assess the reputation of a borrower is the CIBIL score. You might be denied a loan if your report indicates a lack of diligence in paying back debts in the past.
Small business owners must be vigilant in keeping their financial reports in good condition (receipts, accounts, invoices, sales orders, lading bills, and such). Many lenders are specific about proper documentation; thus, proper paperwork would be necessary when applying for a small business loan.
Just like every organization is different, so are the needs for financial resources. There are numerous loan products available. If you are looking for special rates and conditions, you have various means of obtaining loans. Asset purchase, working capital and line of credit are some of the loan options you can explore.
Moreover, always check for the eligibility criteria before applying for a loan for a small business to minimize the chances of rejection. Some of the common parameters that almost all the financial lending institutions look at are considering minimum age requirements, minimum operational months and the minimum amount invested.
Another important tip would be not to postpone or miss repayment of current debts, even though you are taking out a new loan for small business. It affects your credit score and financial goodwill negatively.
Lastly, one should think beyond banks as a source of loan for small business. With the digital economy taking off, it is now possible to explore other reliable alternatives such as NBFC (non-banking financial companies).

The Growing Popularity of Private Lending Institutions:

MSMEs are known as the growth drivers because they contribute to one-third of India’s GDP. Although previously banks were the stronghold of lending for small businesses, now NBFCs have stepped up their presence in this segment. Due to banks’ tightened regulatory standards, stringent paperwork requirements, and the need for property collateral to secure loans, many entrepreneurs have turned to NBFCs to get loans for their small businesses. It would be best if you opt for reputed financing institutions like Kinara Capital. They are transforming lives and local economies in India. They provide hassle-free, quick, and flexible loans for small businesses without land collateral.

Disclaimer:  The above-mentioned story is for information purpose only and the viewers are requested to look forward accordingly as Business Upturn does not take any responsibility of the losses that may occur in further activities of traders and/or buyers.

PM Modi praises MSMEs in India’s progress due to special government schemes

Sanah Shah — Fri, 26 Feb 2021 08:29:29 +0000

Prime Minister Narendra Modi praised the role of the Ministry of Micro, Small and Medium Enterprises (MSME) in the nation’s progress and growth. He said that their contribution to the Atmanirbhar Bharat scheme was very beneficial. News agency ANI reported that special schemes for MSMEs during the Coronavirus pandemic aided around 90 lakh enterprises by providing them with a credit worth of Rs 2.4 trillion.

On 25th February, he addressed a public meeting ahead of the following Assembly polls and said that the conventional view of development only accounted for more vocal interest groups because these two sections were not taken notice of — small businessmen and farmers.

The head of the state added that the National Democratic Alliance (NDA) government at the centre and the government of Tamil Nadu have joined forces as a stark example of cooperative federalism.

PM Modi said, “I want to applaud MSMEs of Coimbatore for creating wealth and adding value. The government of India has taken several steps to help MSMEs.” Continuing to say that the NDA government has prioritized these main two sections.

He referred to the Emergency Credit Line Guarantee Scheme (ECLGS) as one of many examples. The Prime Minister stated that reopening of the economy post the COVID-19 induced lockdown, ECLGS has been significant to boost MSMEs, particularly in Tamil Nadu.

Approximately Rs 14,000 crore has been sanctioned for 3.5 lakh MSMEs throughput the state, PM Modi said. In the Coimbatore district itself, around 2,25,000 MSMEs have gained from this. Last year the definition of MSME was changed, allowing it to be more inclusive and broadband.

The PM said that seven textile parks are expected to come up in three years as the export of leather products, garments and handicrafts are supported. Textile is also an important part of the PLI scheme brought to light late last year.

Citing farmers, PM Modi said, “We do not want our small farmers to feel dependent on anyone or feel suffocated due to middlemen. Our effort for small farmers is aimed at giving them a life of prosperity and dignity.”

The BJP leader noted that the development needs of Tamil Nadu had been met, saying that 12 lakh houses have been given under the PM Awaz Yojana to urban areas of the state. He stated, “We take great pride in the culture of Tamil Nadu. Tamil is the idlest language in the world and Tamil festivals are part of global and across India.”

Lastly, he said that the centre has allowed the setting up of medical institutions in local languages which would endorse thousands of youths.

ICICI collaborates with Niyo to issue prepaid cards to MSMEs

Devanshu Singla — Thu, 14 Jan 2021 07:14:02 +0000

ICICI Bank and Niyo, a new age fintech have partnered to issue prepaid cards to workers of Micro, Small & Medium Enterprises (MSMEs). MSMEs can receive ‘ICICI Bank Niyo Bharat Payroll Card’ powered by Visa, for their blue-collar workers, who are mostly under-banked.

With this, employers can tranfer the salaries of their workers on the card, which the workers can then utilise as per their need. The ‘ICICI Bank Niyo Bharat Payroll Card’ allows an individual to receive funds up to ₹1 lakh into the card account. It offers convenience and safety of digital banking to the blue-collar workforce while providing a state-of-the-art salary disbursement solution to the employers.

Any MSME can partner with Niyo to avail the prepaid card. After the tie-up, cards are issued to the workers at their workplace itself after their KYC verification is done simultaneously using a biometric device. Once activated, workers can use the card to withdraw funds at ATMs, make online transactions on e-commerce portals and make payment by swiping the card at Point of Sale (PoS) machines.

To further facilitate the cardholders, Niyo offers a multilingual app called ‘Niyo Bharat Mobile app’. Workers can download this app from Google Play Store and register themselves. Workers can transfer funds, pay bills or do recharges online through the Niyo App. It also allows them to block/unblock the card which provides them control of their card security. The cardholders also get a free accidental death insurance cover.

PagarBook raises USD15 million in funding led by Sequoia Capital

Divya Joyce — Thu, 17 Dec 2020 09:19:32 +0000

PagarBook, a staff management solutions provider on Thursday said it has raised USD 15 million (about Rs 110 crore) in funding led by Sequoia Capital, which also saw participation from India Quotient in funds from Series A round, which will be used in further product development and to drive customer acquisition.

The company also plans to add financial products such as payments and credit for Micro, Small & Medium Enterprises (MSMEs) and their employees on the platform over the coming year, it added.

Previously, PagarBook had raised a seed round from India Quotient and Sequoia Capital India’s rapid scale-up program Surge.

Ashish Agrawal, Principal, Sequoia India said in the last six months, PagarBook has grown over 100x and now tracks attendance and processes payroll for millions of Indians.

PagarBook, which was founded by Adarsh Kumar, Arya Adarsha Gautam and Rupesh Kumar Mishra in December 2019, helps small and medium enterprises (SMEs) save time on managing and maintaining attendance records, speeding up payment cycles, reducing disputes, eliminating human errors in wage calculation, payment of salaries and various other aspects of human resource management through an easy-to-use workforce management app.

PagarBook currently has over 5 million SMEs registered on the platform. The app is available in 11 Indian languages. In the past seven months, the app has gone from a few thousand to more than 5 million downloads on the Play Store.

‘India’s 60 million SMEs and its 400 million large workforce contribute roughly 30 percent of India’s GDP, but still lack a verified financial and professional footprint in any organized technology ecosystem. As a result, they are left out of the mainstream financial ecosystem,’ Rupesh Kumar Mishra, co-founder of PagarBook, said.

PagarBook addresses this massive gap with its digital human capital platform for SMEs.

‘We are currently managing around 2 percent of India’s SME workforce and by the end of the calendar year 2021, we aim to grow 5x and take this figure to 10 percent,’ Mishra said.