Interest-free credit support to micro-units
As informed by Department of Financial Services (DFS), Indian Banks’ Association (IBA) has been advised to devise a credit card, in consultation with Reserve Bank of India and other stakeholders, similar to Kisan Credit Card (KCC) that provides a card to operate the Cash Credit limit sanctioned to MSMEs for their working capital requirement. As per forty-sixth report of Parliamentary Standing Committee on Finance, SIDBI in association with Government of India is developing a Vyaapar Credit Card (VCC) aimed at providing access to formal bank credit for MSMEs. As reported by DFS, all credit decisions, including interest, are taken by banks in terms of their Board approved policies and as per extant guidelines/regulations of RBI. This information was given by the Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in Rajya Sabha.