New Delhi, Apr 24 (KNN) The Ministry of Micro, Small and Medium Enterprises is today holding a meeting on issues related with the Fintech Companies.

Fintech companies help solve the issues related to finance using technology through networking preferably using some softwares.

The Secretary, Ministry of MSME, AK Panda, is holding the meeting with industry representatives over the issues related to fintech companies.

Officials from Ministries of Finance, MSME, Department of Economic Affairs, Indian Bank Association, NABARD, SIDBI and representatives from MSME associations including FISME and Laghu Udyog Bharti will be participating in the meeting.

Keeping in view that these companies will be of great help to the MSME sector in issues like like getting finance or restructuring sick units, the Ministry is holding discussion with the experts to seek suggestions on making Fintech Companies more helpful for the MSME sector and bring up the issues related to these companies.

lnformal talks with various Fintech companies reveal that only about 30 per cent of the problems faced by the, MSMEs are of pure financial  while the remaining problems are due to marketing issues, delayed payment issues or simply man-made nuisances.

Among the financial issues, most are related to restructuring of loans in case of sickness.

Here, the Fintech companies provide a solution package through advisory and through enabling negotiations with the banks.

Some of the problems faces by the Fintech companies are that they do not get the NBFC registration very easily, investments made by the banks in them should be considered under Certificate of Priority Sector Lending, RBI should be made to be more receptible to the issues.

Meanwhile, talking to KNN, FISME Policy Director, Debashis Bandhopadhyay, said that some of the suggestions to be made by industry the apex body for MSME associations include - a single  registration mechanism for FinTech Companies; Investor protection and securities laws; Access to bank clearing, settlement and segregation, Tax incentives that would help to promote the development of MPLs as a significant source of funding for SMEs.

Elaborating further, Bandhopadhyay said that the Fintech Companies can help in promoting SME lending which would help bridge the funding gap.

He said they could also act as channel partners of banks and financial institutions in order to service small business loans.

Because online platforms and systmes are more efficient and cost-effective for underwriting small  loans, Fintech companies are able to provide a valuable service to FIs in order to expand their market reach,” he added.

The other areas that the fintech companies can help in are - real time appraisals, real time business data etc. (KNN Bureau)