FinMin asks banks to incentivise MSMEs adhering sustainable manufacturing norms

New Delhi, Oct 31 (KNN) The Finance Ministry has urged banks to offer a number of incentives to MSMEs that follow particular sustainability standards for manufacturing, reported Financial Express citing officials.

It has also advised banks to include cheaper credit, in an effort to support the MSME sector at a time when interest rates are on the rise.

To encourage MSMEs become responsible manufacturers and improve credit flow to increase job creation are the two main aims of the government through this move.

In a letter to financial institutions, the department of financial services (DFS) has asked them to put in place policies, approved by their boards, for extending incentives to ZED-certified MSMEs, as per a report by Financial Express.

The ZED (zero defect, zero effect) certification is granted by the MSME ministry to those eligible units that comply with certain sustainability standards to not harm environment.  (KNN Bureau)