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Merchant credit card for MSME traders
January 05, 2023
However, a plan to launch a digital “UPI-linked credit card” for MSMEs, designed by the state-run Small Industries Development Bank of India (Sidbi), could be delayed, as it requires broader inter-ministerial consultations, the sources said.
Moreover, the idea of firming up a common set of guidelines for the two cards MCC and Vyapar Credit Card (VCC) with common objectives has also been put off, they added.
The MSME ministry had earlier roped in Sidbi for launching the VCC as an incentive for those units that get themselves registered on its Udyam portal. The move was aimed at driving more such small businesses towards formalisation.
The VCC, as proposed by Sidbi, promises features, including interest-free credit for 20-50 days and Mudra loan facility. For micro units, it also proposes up to 85% coverage under the credit guarantee fund run by the National Credit Guarantee Trustee Company under the Department of Financial Services (DFS).
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