Agreement For Emergency Response Program

Today, only about 8% of SMEs are served by formal credit channels. The program will encourage the use of fintech and digital financial services in MSME loans and payments. Digital platforms will play an important role in enabling lenders, suppliers and buyers to reach businesses more quickly and cheaply, particularly small businesses that currently may not have access to formal channels. The government and the World Bank today signed a $750 million agreement for the MSME NEW DELHI emergency programme on July 6, 2020. The World Bank and the Indian government today signed a $750 million agreement for the MSME Emergency Response Program to increase financial flows between micro, small and medium-sized enterprises (MSM). which is heavily affected by the COVID 19 crisis. To date, the World Bank has provided $2.75 billion to support India`s COVID-19 emergency response, including the new MSME project. The first $1 billion in emergency aid was announced last April for immediate assistance to India`s health sector. Another $1 billion project was approved in May to increase money transfers and food services for the poor and needy, including a more consolidated deployment platform accessible to rural and urban communities across national borders. The World Bank`s MSME emergency assistance program will cover the immediate liquidity and loan needs of approximately 1.5 million viable SMEs to help them cope with the effects of the current shock and protect millions of jobs. This is the first step in a broader reform package needed to move the MSME sector forward over time. Business Standard has always strived to provide up-to-date information and feedback on developments that interest you and have broader political and economic implications for the country and the world.

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