As a new scheme towards easing the ways of doing business in India, Union Minister of Finance & Corporate Affairs, Arun Jaitley launched two important initiatives of the Ministry of MSME; viz. MSME Databank Portal and Online Finance Facilitation Web Portal to offers collective funding options for MSMEs in India. Both these initiatives will help to save money and time of both the financial institutions and MSMEs when taking course of action of financing.
Online Census of MSMEs
Union Minister for MSME, Kalraj Mishra said, “For the first time the Ministry of MSME is making online Census of the MSMEs in the country by launching a comprehensive databank on http://www.msmedatabank.in . This initiative will not only save the efforts and money required for physical Census but will also enable the MSME units and the various Associations to furnish data online.” The key objective of this initiative is to have one-stop- shop solution for key information of MSMEs so that financial institutions can get easy access of all type of information they required before financing MSMEs.
This will also help MSMEs to get funding from different financial institutions. MSME Development Rules, 2016 have also been notified making it compulsory for MSMEs to give the required information. The MIS dashboard of the databank will provide real time information on various types of the MSMEs registered on the databank. The databank will eventually will be used for public procurement purposes and the PSUs will make use of the data for procuring from MSMEs. Simultaneously, it will also aid MSMEs with online documentation and preparation of all bankable project proposals online.
Finance Facilitation Centres
The National Small Industries Corporation (NSIC), which provides suitable credit support to the various MSME units for purchase of raw material, has started an online Finance Facilitation Centre on http://www.nsicffconline.in. The first six finance facilitation centres became operational at Ludhiana, Jalandhar, Peenya, Lucknow, Delhi, Guwahati. Through this portal the MSMEs will be able to apply for loans from the different banks by sitting at their units. To facilitate this initiative, NSIC has signed MoUs with 33 major banks, 14 of whom have agreed to associate with online Finance Facilitation Web Portal.
Moreover, the ministry will also follow various plans for capturing data of MSMEs and Associations. The process has started with the launch of both these initiatives. Government had launched many other new policies for helping MSMEs in India.