“The MCC program will provide flexibility for banks to tailor their products to policies approved by the board,” said a government official. Development of handicrafts Bank of India The official added that they are working on the details for the VCC, which aims to encourage entities to register on the Udyam Portal.
Another official said the idea is to incentivize nano-MSMEs such as street vendors and kirana, and help them participate in the formal financial system. “It is necessary to have uniformity of card benefits for each group of subjects MSMEs as existing MSME tokens differ in their terms,” he added.
ET reported in April that a congressional standing committee on finance headed by Jayant Sinha advertised the credit card offering for MSME entrepreneurs on the Kisan Credit Card lines.
The government plans to provide short term credit with low interest rates for MSMEs to meet their working capital needs to ensure a steady credit flow in the context of a slowing global economy. There are 63 million MSMEs in the country, providing 110 million jobs.
