The portal called Bharat Craft would be jointly run by the bank and the government.
Uttar Pradesh, Maharashtra, West Bengal, Delhi and Tamil Nadu were the top states where local micro, small and medium enterprises (MSMEs) have shown maximum interest in taking their businesses online.
As part of the system, a network of control rooms is created in a 'Hub and Spoke' model.
Among states, Maharashtra has the highest number of registered MSMEs with 1,104,189 units, followed by Bihar (829,694), Tamil Nadu (791,288), Uttar Pradesh (706,342) and Madhya Pradesh (645,077).
MSMEs are the first to take hit in an economic downturn. This time too, many MSMEs are hit hard due to the onslaught of the pandemic. The demand on the ground has slowed to a trickle. Adding to the woes, a good number of skilled workforce has moved back to their home states due to the prolonged lockdown.
The notification also says that hereafter, an MSME will be known as Udyam, as this is more closer to the word enterprise. Accordingly, the registration process will be known Udyam Registration.
Gadkari urged the Mahila Morcha to conduct workshops for women where officials from MSMEs and Khadi Gram Udyog can guide them about entrepreneurial opportunities.
MSMEs across sectors have been hard hit by the COVID-19 pandemic and the lockdown measures have put many MSMEs on the brink of survival.
RBI has cut the repo rate by 115 bps since the lockdown began on March 25
Cut the regulatory cholesterol of complex laws and cumbersome paperwork — this will help small businesses focus their resources and energies towards efficiency and higher productivity
Solving the identity problem is necessary to enable a shift away from a survival mindset and towards a growth mindset
The funding scheme to help the distressed MSME sector entails a sub-debt facility to the promoters of those operational MSMEs that are distressed or non-performing assets (NPAs). It is also called the 'Distressed Assets Fund — Sub-ordinate Debt for MSMEs'.
The report notes that despite the MSME-focussed steps announced by the Centre as part of the financial relief packages, the sector continues to experience stretched liquidity "given the long credit period extracted from MSMEs by large corporates, many of which have sufficient liquidity of their own."
Gadkari said that during the current coronavirus-induced economic crisis, there is a need for projects on PPP to boost the economy and urged industry players to come forward in this direction, be it a bus port or godowns or industrial facilities.
As part of the Aatma Nirbhar Bharat (Self-reliant India) package, the government had last month announced its plan for Rs 3 lakh crore as additional credit to MSMEs and small businesses.
The Niti Aayog vice chairman noted that the government is working on saving lives and livelihoods.
Under the 100% ECLGS, the loans sanctioned by public sector banks increased to Rs 42,739.12 crore, of which Rs 22,197.54 crore has been disbursed, she said.
Fitch Director Sovereign Ratings Thomas Rookmaaker said COVID-19 is still in India and it is “very likely” that the government will have to spend a bit more on fiscal measures to support the economy.
The Microfinance Institutions Network (MFIN) is an RBI-recognised self-regulatory organisation and industry association of the microfinance sector.
Speaking at a meeting with senior bank officials and industrialists here, Velumani said the portal would be helpful to banks and industrialists.
Speaking at a webinar organised by Bharat Chamber of Commerce, Kumar said that both the RBI and the government have taken measures to bring back the economy, derailed by the pandemic, back on track.
In fact, on a cumulative basis, only half of the amount sanctioned is disbursed so far. PSB bankers are on an overdrive to make the scheme work under direction of the government
Gadkari said work is in progress on setting up of the MSME stock exchange, which is expected to address capital woes of the sector.
The need of the hour is clarity in policy communication by making it simple for the MSMEs, without leaving any room for subjectivity.
Public sector banks (PSBs) have sanctioned loans worth Rs 32,049.86 crore under the 100 per cent ECLGS for the Micro, Small & Medium Enterprise (MSME) sector starting June 1. The scheme is the biggest fiscal component of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman last month.