Push on digital banking, MSMEs to boost economy: banking experts

George Alexander Muthoot, MD, Muthoot Finance, said the MSME announcement and push on digital banking in the budget will go a long way to supporting the economy,

He said the MSME sector has been one of the hardest hit during the pandemic. To further support the MSME sector and reduce tensions in this segment, the government has expanded the ECLGS program and revamped the CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises). The CGTMSE program will be reorganized with the required injection of funds. This will facilitate additional credit of ₹2 lakh crore for MSMEs and expand employment opportunities. We believe that the NBFC sector will also benefit from the ₹48,000 cr allocation for affordable housing. The move will accelerate demand for credit and positively affect the performance of NBFCs serving the sector, he said.

K Paul Thomas, MD and CEO, ESAF Small Finance Bank, said the introduction of Edu tech, fintech and upskilling programs along with a digital push will set the trajectory for sustainable growth. As campuses are allowed to open in the Gift Cities and specific courses in finance and fintech are encouraged by global universities, there is immense opportunity for growth in the sector. As Kerala is planning to have the country’s second gift city in Kochi, it will be a big boost for the higher education sector in the state.

Facilitating additional credits for MSMEs and launching the MSME Acceleration and Enhancement Program (RAMP) would help the MSME sector mitigate adverse situations.

Published on

February 01, 2022

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