Government announces financial inclusion index, easy credit to MSMEs
New Delhi, Sep 25 (IANS) The government on Tuesday announced three initiatives to push the bank to the last mile, including a financial inclusion index, geographic mapping of banking services and hassle-free online lending for MSMEs valued up to 1 crore rupees.
After an annual review meeting of public sector banks, Finance Minister Arun Jaitley launched a common online platform for credit to micro, small and medium enterprises (MSMEs) that will allow businesses to obtain loans up to 1 crore rupees approved through fully automated process in just 59 minutes.
He said that MSMEs were a matter of concern for the government as the sector that generates the greatest number of employment opportunities.
Releasing credit to the sector from all forms of red tape would lead to rapid loan disbursement and help MSMEs grow, the minister said.
The government also announced a Financial Inclusion Index, which would be released by the end of this year and would rate states based on their performance in terms of the availability of last mile banking services.
Jaitley said the Financial Inclusion Index would create an element of competition between states, with each vying for last mile connectivity in banking.
Financial Services Secretary Rajeev Kumar said the index would be a measure of access and use of basic formal financial products and services, including savings, remittances, credit, l insurance and retirement products.
The government also announced a banking service infrastructure locator app “Jan Dhan Darshak” which aims to bring banking services within the reach of all citizens through more than five lakh “banking contact points” including bank branches. , correspondent banks, automatic teller machines, common service centers and office posts.
“GIS (Geographic Information System) mapping of banking services will be a convenient method for anyone to find the nearest banking contact point,” Jaitley said, adding that it would complement the government’s initiative to have banking services available within five kilometers of each household.
vv-mgu / vsc / vm
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: IANS