No plans to implement MSME rating system: MoS MSME

New Delhi, Mar 24 (KNN) Minister of State for MSME, Bhanu Pratap Singh Verma informed Lok Sabha on Thursday that the MSME Ministry currently doesn’t have any proposal to implement a rating system for monitoring MSMEs.

This was his reply to a question on whether the government has any proposal for the MSME rating system which was highly supported by the former MSME Minister Nitin Gadkari.

He called for creating a rating system for MSMEs during his tenure, but the Ministry has clarified that right now it doesn’t have any proposal in place.

In November 2019, the previous MSME Minister had announced that the government is in the process of launching ‘Digital data-based credit ratings’ for MSMEs to enable them to raise bank credit based on the ratings.

For MSMEs with AAA rating, the government proposed to buy 15 per cent of the amount raised by the enterprise from public markets as equity stakes.

The idea was to boost MSMEs to explore public markets for capital raising. 

However in December 2022, Credit bureau TransUnion CIBIL had launched a ranking model for MSMEs FIT Rank in tie-up with digital credit marketplace Online PSB Loans.  (KNN Bureau)