Govt to form deposit-taking Microlending body for Women, Small Businesses: Gadkari

Government subject to approval to make a deposit-taking social microfinance organisation for loan disbursal

In a recent Hero Mindmine virtual meeting The Union Minister for Road Transport, highways and micro, small & medium enterprises Nitin Gadkari mentioned a discussion with Nobelist and Grameen Bank Founder Mohammed Yunus of Bangladesh. While taking a hint from that discussion during a deliberation with FICII Ladies Organisation (FLO) today, stated the govt., further, to the approval from the Finance Ministry and other stakeholders, will create a deposit-taking ‘social microfinance organisation’ to disburse loans of up to Rs 10 lakh to women and small entrepreneurs.

Niti Aayog is taking this initiative and on the idea of Elucidation, the process for such a system, the financing entity can apply for the registration and, will be accorded a license from RBI. This entity then can accept deposits and extend loans to the borrowers. It’ll be an easy, method and, is being developed for social micro & small institutions.

“All the small entrepreneurs will get finance the thought is how we will create employment potential within the country,”.

Acknowledging challenges are being faced by various sectors of the economy, the minister said there’s a requirement to make industrial clusters across the country, and call-on all for a special-focus on handlooms, handicrafts, agro-processing units to assist people across the board.

Gadkari further added, while the issues posed by urbanisation are before us, we’d like to enhance the lives of the rural population also. We are focussing only on cities nevertheless there’s a requirement to possess ‘smart village’ initiatives too.

Accepting that this is not the apt time for such a law, Gadkari said timely payments are vital to small business units and, therefore the govt., is contemplating laws to make sure the state-owned entities release payment on time.

A few days back, he had requested Amazon India to extend its exports of Indian MSME-produced goods to Rs 3 lakh crore per annum from this Rs 60,000 crore in two years. Rs 1.20 lakh crore has been disbursed, to small businesses as a part of the Rs 3 lakh crore government-guaranteed loans package within the event of the pandemic.

Gadkari, also added Pune is getting very congested and, there’s an increasing need for a satellite city of ‘New Pune’ on similar lines of Navi Mumbai. The Government has identified a cost-effective 5, lakh-acre land parcel near Ahmednagar, along the Kalyan-Ahmednagar highway.