MoS Finance Highlights Digital Credit & Payment Initiatives For Small Businesses

New Delhi, Dec 4 (KNN) Minister of State (MoS) for Finance Pankaj Chaudhary informed the Rajya Sabha on Tuesday that the government recently launched initiatives to enhance digital platforms and services for taxpayers and small businesses.

A key measure is the recent launch of the Credit Assessment Model (CAM) for Micro, Small and Medium Enterprises (MSMEs) to streamline access to formal credit. 

The model utilises digitally verified data from the ecosystem to enable automated loan appraisal and objective decision-making. 

It provides model-based credit limit assessments for both Existing to Bank (ETB) and New to Bank (NTB) MSME borrowers, facilitating faster and more transparent lending processes.

On the promotion of digital payments, the Minister said that the Government, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) continue to implement targeted initiatives to expand cashless transactions. 

These include the incentive scheme for RuPay debit cards, support for low-value BHIM-UPI (P2M) transactions, and the Payments Infrastructure Development Fund, which subsidises the deployment of payment acceptance devices such as point-of-sale terminals and QR codes in underserved regions.

The extension of the PM SVANidhi Scheme until March 31, 2030, was also highlighted. 

The programme provides collateral-free loans to street vendors, with enhanced credit limits of Rs 15,000, Rs 25,000, and Rs 50,000 across three loan tranches.

Additional features include a UPI-linked RuPay credit card with a Rs 30,000 limit and cashback incentives for digital transactions, aimed at deepening financial inclusion among urban micro-entrepreneurs.

(KNN Bureau)