PhonePe partners with SIDBI, MSME Ministry to increase small business formalisation and provide credit

admin — Thu, 11 Sep 2025 05:20:00 +0000

Founder and CEO of PhonePe Sameer Nigam speaks during the launch of the Udyam Assist Portal program, in New Delhi on September 10, 2025
| Photo Credit: ANI

PhonePe will work with the Ministry of Micro, Small and Medium Enterprises (MSMEs), and the Small Industries Development Bank of India, to register more small merchants with the Udyam facility, and thereby open up more avenues for credit and availing government schemes, the company announced on Wednesday (September 10, 2025).

Udyan is a platform by the government to formalise more MSMEs, and SIDBI has already worked on an “assist platform” to make it easier for merchants to register for an Udyam number. That assist platform is set to be integrated with PhonePe directly, with the company saying that this will allow merchants “access to government schemes and tax benefits, [and offer them] the ability to open business bank accounts, and access to the digital payments ecosystem and financial services.”

The assist platform “enabled the issue of Udyam Assist Certificates to more than 2.75 crore small businesses, over a period of more than 2 years,” SIDBI chief general manager Y.M. Kumari said in a statement. “This initiative will further accelerate the formalization of informal micro-businesses into the mainstream economy as well as ease out and enhance credit flow to these entities.”

Jitan Ram Manjhi, Minister for MSMEs, said at the announcement that 70% of Indians required better access to formal credit, and that the “blot” of this statistic would have to be “cleaned off” with initiatives like this.

Published – September 11, 2025 10:50 am IST

Source link

Budget 2023 | Revamped credit guarantee scheme for MSMEs to be implemented from April 1

admin — Fri, 03 Feb 2023 16:06:54 +0000

The revamped credit guarantee scheme for Micro, Small and Medium Enterprises (MSMEs) will take effect from April 1, through infusion of ₹9,000 crore in the corpus, said Union Finance Minister Nirmala Sitharaman while presenting the Union Budget 2023.

“This will enable additional collateral-free guaranteed credit of ₹2 lakh crore. Further, the cost of the credit will be reduced by about 1%,” she said.

“Further, in cases of failure by MSMEs to execute contracts during the COVID-19 period, 95% of the forfeited amount relating to bid or performance security will be returned to them by government and government undertakings. This will provide relief to MSMEs”, the Finance Minister said.

The total allocation for the MSME Ministry will see a nearly 42% increase for 2023-24 with ₹22,138 crore to be made available compared to ₹15,629 crore in 2022-23. Schemes such as Raising and Accelerating MSME Performance (RAMP) and Scheme for Fund for Regeneration of Traditional Industries (SFURTI) will see significantly higher allocation compared to FY23.

The Federation of Indian Micro and Small & Medium Enterprises (FISME) and the Coimbatore District Small Industries Association (CODISSIA) said in press statements that to ensure MSMEs received payments on time, the Budget has proposed that deduction for expenditure incurred on payments made to MSMEs will be allowed for buyers only when the payment is actually made. This means buyers cannot claim deduction without paying the MSMEs.

The FISME added that setting up of a National Financial Information Registry will help create a robust information system and help MSMEs access loans. The Common Universal Identifier for businesses proposed in the Budget will also rid MSMEs of the need for having multiple identities, it added.

Source link

MSME Ministry – Artifex.News

PhonePe partners with SIDBI, MSME Ministry to increase small business formalisation and provide credit

Budget 2023 | Revamped credit guarantee scheme for MSMEs to be implemented from April 1