Sidbi Partners with Indian Post to Extend Credit to Rural Micro-Entrepreneurs

ENA MSME 2024-07-11 15:44:54 New Delhi, Jul 11 (KNN) The Small Industries Development Bank of India (Sidbi) has announced a partnership with India Post Payments Bank (IPPB) to leverage the extensive network of postmen for providing credit to micro-entrepreneurs in India's hinterlands. Sudatta Mandal, Deputy Managing Director of Sidbi, unveiled this innovative approach at the CII Growth Summit in New Delhi on Wednesday. We aim to harness the dakiya (postmen) network to reach micro-enterprises at the grassroots level, Mandal stated. Postmen will act as our partners, not only collecting credit proposals but also assisting in loan monitoring and collection. The program, set to launch next month, will utilise IPPB's vast infrastructure of 136,000 post offices, with over 120,000 located in rural areas. This extensive reach is expected to significantly enhance financial inclusion in regions often underserved by traditional banking systems. An unnamed senior IPPB official explained the rationale behind the partnership: Due to our lending restrictions, we're collaborating with Sidbi to facilitate the loans. We're currently awaiting approval from the Reserve Bank of India. This initiative comes at a crucial time for India's MSME sector. Government data indicates over 30 million registered MSMEs as of December 2023, with micro-enterprises defined as those with investments in plant and machinery not exceeding Rs 1 crore and turnover below Rs 5 crore. At the same event, Ishita Ganguli Tripathy, additional development commissioner at the Ministry of MSME, emphasised the need to increase women's participation in registered MSMEs. She advocated for a 7 As approach: Availability, Accessibility, Affordability, Awareness, Accountability, Alliance, and Achievement. Tripathy also stressed the importance of educating MSMEs about regulatory requirements and ESG (Environmental, Social, and Governance) compliances for sustainable growth, calling on both government and large enterprises to support this effort. As India's principal financial institution for MSMEs, Sidbi plays a vital role in promoting entrepreneurship and economic growth through various programs including credit guarantees, direct lending, venture capital, and digital platforms. (KNN Bureau) 38559 https://knnindia.co.in/news/newsdetails/msme/sidbi-partners-with-indian-post-to-extend-credit-to-rural-micro-entrepreneurs 2024-07-11 15:44:54 knnindia.co.in Sidbi Partners with Indian Post to Extend Credit to Rural Micro-Entrepreneurs