Page 17 - Banking Finance May 2021

ROUNDUP

RBI stated, "It is proposed to enable, including weekend curfews and vendor payments, as well as managing
in a phased manner, payment system weekday activity restrictions. reimbursements for travel and
operators, regulated by the Reserve The economic impact of these curbs entertainment expenses of employees.
Bank, to take direct membership in will depend on their duration and Shachindra Nath, MD & Executive
CPSs. This facility is expected to severity. Expanded curbs could derail Chairman, U GRO Capital, said, "We are
minimise settlement risk in the the fragile recovery in India's NBFC elated to collaborate with SBM Bank
financial system and enhance the sector since a nation-wide lockdown India and launch this distinctive
reach of digital financial services to all
was gradually relaxed from mid-2020. arrangement powered by the RuPay
user segments." Network. The 'GRO Smart Business'
S Ramann appointed as Credit Card will allow our MSME
NBFCs to face asset customers to manage their urgent credit
SIDBI MD & Chairman
quality, liquidity risk due requirements and cash-flows effectively.
The government has appointed S. MSMEs face a frequent need of urgent
to COVID-19 second wave Ramann as Managing Director and credit, catering to which becomes a

Non-Banking Finance Companies Chairman of Small Industries challenge causing drastic cash flow
(NBFC) of India are likely to face asset Development Bank of India (SIDBI). disruptions. This arrangement will enable
quality and liquidity risks owing to the According to the government the businesses to tackle these situations
second wave of the COVID-19 statement, the appointment is for a effectively. We have been constantly
pandemic, forecasted credit rating period of 3 years from the date of his exploring impactful solutions to support
agency Fitch Ratings. Fitch has recently assuming the charge or until further the revival and growth of the nation's
said that NBFCs will face increased orders. MSMEs. We believe this collaboration to
challenges if the restrictions to contain be a significant initiative in the right
the pandemic are expanded or Ramann, a 1991-batch Indian Audit & direction."
prolonged which in turn leads to Accounts Service officer, is currently Neeraj Sinha, Head - Consumer &
economic and operational disruption. the CEO of National E-Governance
Services Ltd. Retail Banking, SBM Bank India,
Fitch stated that it had revised India's stated, "At SBM Bank India, we are
GDP forecast for the FY22 to 12.8% in SBM Bank India & U GRO committed to use the power of
its March, 2021 Global Economic banking, technology and collaboration
Outlook, from 11% in the previous Capital partner to launch to create uniquely smart solutions. The
forecast in December, 2020 due to the credit card for MSMEs launch of 'GRO Smart Business' credit
unexpectedly strong rebound in U GRO Capital recently announced its card is in line with the same strategy.
economic activity in late 2020 and early partnership with SBM Bank India for We are proud to partner U GRO
2021. Capital for the new product."
the launch of 'GRO Smart Business'
Fitch said, "The forecast revision credit card, powered by RuPay, along
incorporated expectations of a with EnKash. These are a range of Average daily FASTag
slowdown in 2021 due to the flare-up secured credit cards specially designed collection crosses Rs. 100
in new Corona Virus cases. However, for MSMEs. These can be availed by
an increase in the rate of infections the U GRO Capital borrowers against crore-mark: Gadkari
and broadening of social distancing a fixed deposit with SBM Bank India. The average daily toll collection
restrictions pose downside risks to our According to U GRO Capital, the credit through FASTag has reached Rs. 100
projections." crore daily, Parliament was informed
card will offer a gateway to Smart
A hotspot is Maharashtra, the state Banking and will help MSME recently.
with the largest economic contribution entrepreneurs in solving multiple The government has made FASTags
in India at 13-14% of India's GDP. financial challenges, such as meeting mandatory from February 15 midnight
Maharashtra introduced stricter social- immediate expenses like purchases of and any vehicle not fitted with it will
distancing measures recently in equipment and supplies, make be charged double the toll at electronic
response to rising COVID-19 cases, business utility bill payments, manage toll plazas across India.

BANKING FINANCE | MAY | 2021 | 17