Page 29 - Banking Finance December 2021

ARTICLE

considerable deployment of public funds with overlapping Framework for Revival and
guarantees and gross underutilization/over-leverage of the
corpus in some funds. Rehabilitation of MSMEs
In order to provide a simpler and faster mechanism to address
While both CGTMSE and NCGTC offer the credit guarantee the stress in the accounts of MSMEs and to facilitate the
product, the guarantee structure and features are different. promotion and development of MSMEs, the Ministry of Micro,
Structurally, the primary difference is that the CGTMSE is a Small and Medium Enterprises ,Government of India, vide its
loan level guarantee scheme while CGFMU for MUDRA Gazette Notification dated May 29, 2015 notified a
loans, run by NCGTC, is a portfolio level guarantee scheme. 'Framework for Revival and Rehabilitation of Micro, Small and
This means that pay-outs happen under CGTMSE when Medium Enterprises'. Further Reserve Bank of India has also
individual loans, covered under the scheme, start to default. issued guidelines to the Banks on 17.3.2016. Under these
In contrast, pay-outs happen in CGFMU only when the guidelines Banks have created mechanism for finalizing
corrective action plan for revival & rehabilitation of MSMEs.
threshold NPA level of the portfolio is breached. As on
March 31, 2018 the corpus of CGTMSE was ?6200 crore and
that of CGFMU was Rs. 3200 crore. MSME DataBank
For facilitating the promotion and development and
MSME SAMADHAAN Portal enhancing the competitiveness of MSMEs, the Ministry of
MSME vide Gazette Notification No. 750(E) dated
MSME Delayed Payment Portal -SME Samadhaan (https://
samadhaan.msme.gov.in) has been launched empowering 29.07.2016 had notified the MSME Development (Furnishing
micro and small entrepreneurs across the country to of information) Rules, 2016 under which all MSMEs are to
furnish information relating to their enterprises online to the
directly register their cases relating to delayed payments Central Government in the data bank maintained by it at
by Central Ministries/Departments/CPSEs/State
www.msmedatabank.in. This data bank will enable Ministry
Governments. Micro, Small and Medium Enterprises of MSME to streamline and monitor the schemes and pass
Development (MSMED) Act, 2006 contains provisions to deal on the benefits directly to MSMEs. It will also provide the
with cases of delayed payment to Micro and Small
real-time information about the status of MSMEs under
Enterprises (MSEs). As per the provisions, the buyer is liable various parameters.
to pay compound interest with monthly rests to the supplier
on the amount at three times of the bank rate notified by Data Bank is helpful to MSME units, who can now update
Reserve Bank in case he does not make payment to the their enterprise information as and when required without
supplier for the supplies of goods or services within 45 days visiting any government office and also 7 Annual Report
of the day of acceptance of the goods/service or the deemed 2019-20 update information about their products / services,
day of acceptance. which can be accessed by government departments to do
procurement under Public Procurement Policy of
Revised Udyam Registration: Government of India. More than 1.61 lakh units have been
A one-page simple registration form for online filing of registered (31.01.2020) under MSME Data Bank since
Udyam Registration has been introduced which replaces the issuance of its notification.
filing of Entrepreneur's Memorandum Part I&II. The filing
of UAM can be done on - https:// MyMSME : To facilitate the enterprises to take benefits of
msmeudyamregistration.org various schemes, the Office of Development Commissioner
(MSME) has launched a web-based application module,
The salient features of Udyam Registration are: namely, MyMSME. This can also accessed through a mobile
app. Entrepreneurs can make their applications and track
" Registration is online and user-friendly.
it as well on the mobile itself.
" It can be filed on self-declaration basis.
" No documentation required. Direct Benefit Transfer in the M/oMSME
" No Fee for filing. All welfare and subsidy schemes of Governments of India

BANKING FINANCE | DECEMBER | 2021 | 29