As per Central Statistics Office (CSO), the contribution of the MSME Sector in the country's Gross Domestic Product and export is around 28.90% and 48% respectively and generated about 110 million employments.
Micro, small and medium enterprise is the sector which was already reeling under huge distress firstly because of demonetization, then because of GST followed by the prolonged economic slowdown, and finally, the biggest of all - the COVID-19 which is going to aggravate the crisis in this specific sector further. The Covid-19 outbreak has brought the globalized world to a standstill. India's economy has taken a massive financial hit during the lockdown imposed to prevent the spread of the corona virus.
During COVID, the Government of India has announced relief measures called 'Atmanirbhar Bharat Package' for many sectors along with MSMEs and also changes the definition of MSME for immediate boost up of the economy. The same is welcomed by the industrialists and all the citizens affected by the pandemic. Some steps were taken by the Government of India to boost the MSME sectors which are as under:
1. MSME New Definition- Important Features:
-
There will be no distinction between Manufacturing and Service enterprises under the new norms of MSMEs.
-
If an enterprise crosses the ceiling limits in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category. All units with GSTIN listed against the same PAN shall be collectively treated as one enterprise.
This story is from the August 2021 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2021 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Insolvency's Group Tangle
The Insolvency and Bankruptcy Code (IBC) has been around for nearly seven years, and in these seven years, it has been amended six times. However, it is yet to address a significant concern: group insolvencies.
Why mot retirees don't find refuge in reverse mortgage
It would be the deal of the century, or so Andre-Francois Raffray could have thought. The Frenchman had in December 1965 stuck a deal with 90-year-old Jeanne Calment to pay her 2,500 francs every month until she died.
The rise and rise of mutual funds
It is curious that the cake cutting and champagne popping that accompanied the Nifty's new lifetime high in recent weeks, was not in evidence when the mutual fund industry topped Rs. 50 lakh crore in assets.
UNSECURED RETAIL LENDING IN INDIA + CAPTURING EMERGING TRENDS
Abstract: In recent times, RBI has been vocal about the high growth rate of unsecured retail credit in India as compared to the overall credit growth in the country. The RBI has termed the unsecured retail credit an outlier segment\" as far as its growth rate is concerned and has drawn the attention of banks and NBFCs in this regard. As part of regulatory intervention, RBI has also increased the risk weights associated with unsecured credit exposure of banks and NBFCs. Post this development, the banking fraternity has been divided in their understanding of the ground realities. On one hand, there is a school of thought which feels that the recent surges in the unsecured retail lending in India is backed by solid macros. Whereas, others feel that the more than expected upsurge is a sign of incipient stress and might pose systemic risk, if not dealt with an iron hand.
TRANSFORMING BANKING THROUGH ARTIFICIAL INTELLIGENCE
The transformation of banking through artificial intelligence (AI) has been a significant and ongoing trend, with numerous implications for customer experience, operational efficiency, risk management, and more.
NEED FOR CORRUPTION FREE BANKING IN INDIA
Introduction: Corruption is dishonest behaviour or abuse of entrusted power for private gain. It starts with the tendency of using public office for some personal benefit, implies the failure of ethics and erodes trust, weakens democracy, hampers economic development, undermines democratic institutions slows economic development, contributes to governmental instability and further exacerbates inequality, poverty, social division and the environmental crisis. Corruption is a complex social, political and economic phenomenon that affects all civilisations and attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law and creating bureaucratic quagmires whose only reason for existing is the soliciting of bribes. Economic development is stunted because foreign direct investment is discouraged and small businesses within the country often find it impossible to overcome the \"start-up costs\" required because of corruption.
FROM RUPEE TO DIGITAL CURRENCY: UPI AND CBDC IN INDIA
India's remarkable digital transformation has been driven by innovative financial technologies and a vision for an inclusive, cashless economy. Two significant milestones in this journey are the Unified Payments
EMPOWERING THE DIGITAL JOURNEY: THE CRUCIAL ROLE OF STRAIGHT-THROUGH PROCESSING (STP) IN BANKING
In the ever-evolving landscape of banking and financial services, the digital revolution is reshaping industries and redefining customer expectations. As banks embark on their digital journeys to meet these changing demands, the implementation of Straight-Through Processing (STP) has emerged as a cornerstone strategy for success. STP not only streamlines internal operations but also plays a pivotal role in enhancing customer experiences, reducing costs, and fortifying the foundation for a seamless digital future.
'DIGITAL BANK' - LICENSING AND REGULATORY FRAMEWORK IN INDIA AND WAY FORWARD
Last 6 to 8 years have seen rapid development in 'Digital bank' across the world, and China is no exception. Digital banks have an entirely branchless digital service and the need for physical branches is replaced by non-stop, 24/7 customer service and automated systems.
CONCENTRATION: THE NAUGHTY MONKEY
Maintaining mental focus can be quite challenging, especially with the constant distractions we encounter on a daily basis. In today's interconnected world, it is incredibly easy to get sidetracked by notifications from social media or the latest news updates. However, having strong mental focus is vital for achieving success. The ability to concentrate on a task at hand is essential for learning, accomplishing goals, and performing well in various situations.
