New Delhi, Mar 7 (KNN) The government recently announced forming a steering committee to study issues relating to the Fintech companies, and to leverage financial inclusion to the Micro, Small and Medium Enterprises (MSMEs).

The announcement comes in the backdrop of the finance minister assuring a framework to come up soon in his budget speech earlier.

To consider various issues relating to development of Fintech space in India with a view to make Fintech related regulations more flexible and generate enhanced entrepreneurship in an area where India has distinctive comparative strengths compared to other emerging economies, the release from government said.

The Steering Committee will also focus on how Fintech can be leveraged to enhance financial inclusion of MSMEs, the release further added.

Earlier, talking to KNN, several entrepreneurs raised the problem of lack of easy credit to the MSME sector.

Sunil Vaish, President of MSME body Indian Industries Association said that the flow of funds for the MSME sector still continues to be a big issue.

“The banks are not very open to credit the MSMEs, while the government has instructed the banks to make sure steady credit for the sector, it is not very much being implemented”, he said.

Explaining the concern further, Vaish said that the MSMEs are usually a one man show and it is not possible for the entrepreneur to have very bright balance sheets and trade ratio, as a result easy credit for MSMEs far from reality. (With PIB Inputs) (KNN/DA)