- Zee Business
"MSME lending: Panel asks regulators to encourage adoption of Account Aggregator standards"
A parliamentary panel on Tuesday asked the financial sector regulators to encourage and accelerate the adoption of Account Aggregator standards across all regulated entities with a view to expediting lending to the MSME sector.
The Standing Committee on Finance headed by BJP leader Jayant Sinha said MSME financing could be vastly expanded and better targeted through an integrated digital ecosystem. Once it is in place, it is possible to provide an affordable line of credit (particularly with the MSME Vyapar credit card) for working capital, ensure trade financing for their revenues, provide capital loans at affordable rates, and necessary credit guarantees.
The proposed digital ecosystem would help the concessional financing and credit guarantee to be better targeted to those sectors that are experiencing difficult economic conditions due to external factors beyond their control.