Mangaluru, Feb 4 (KNN) Ministry of MSME made a proposal demanding funds worth Rs 5, 000 crore but Prime Minister Narendra Modi gave the Ministry funds worth Rs 6,500 crore, said  Haribhai Parthibhai Chaudhary.

He was addressing an Assocham event on Digital Payments. He said the budget has provided a lot of support to the MSMEs.

"This budget has provided a lot of support to the MSMEs firstly by almost doubling the allocation, now the small entrepreneur will get collateral free loans worth up to Rs 2 crore, presumptive tax reduction of two percentage point to 6% are laudable steps that would help strengthen the sector," he added.

The Minister revealed that the Ministry of MSME has received 4.40 lakh applications from budding entrepreneurs seeking assistance from the government for setting up business.

"I recently took a meeting of small entrepreneurs in Mumbai and received applications from 4.40 lakh entrepreneurs for setting up new industries," said Chaudhary while inaugurating an ASSOCHAM national summit on 'Digital Payment: The paradigm shift.'

The minister sought MSME industry's views and suggestions on goods and services tax (GST). He also complemented the PM for successfully carrying out demonetisation drive. "Demonetisation was not merely a historical but a risky step but the PM succeeded in his endeavour."

Sanjay Kumar, general manager, RBI (Reserve Bank of India) said that India is rapidly moving towards becoming a less-cash economy which is likely to bring more transparency in monetary transactions.