WTC Goa Seminar resolves to Fund the Unfunded

World Trade Centre, Goa in association with International Centre of Goa organized a seminar on ‘Microfinance – A game changer for financial inclusion.’ The seminar was part of WTC Goa’s ‘Make in India’ series and focused on the need of the banking sector to handhold small customers. Microfinance involves providing all kinds of financial services including banking, credit, insurance, payment and pension facilities to the users. Jiji Mammen, CEO, Micro Units Development and Refinance Agency Ltd (MUDRA), focused on various schemes under the Pradhan Mantri Yojana, which pushes for much-needed financial inclusion. Microfinance promotes “funding the unfunded” based on the JAM model i.e. Jan dhan-Aadhar-Mobile, stated Mammen.

India has 57 million units seeking microfinance and is the second largest employment creator to the level of `10-12 crore, after agriculture.  “Less than five per cent of these get bank credits. For loans up to `10 lakh, they should now approach the PM Mudra Yojana and loans above `10 lakh are now catered to by the Small Industries Development Bank of India (SIDBI),” informed Mammen.

Responding to a question regarding eligibility of an IT company for the PM Mudra Yojana, he urged users to access the ‘Stand Up Mitra’ portal for further guidelines. “Digitisation is our greatest achievement as the E-commerce industry has benefitted with various data capturing and management methodologies, which will also supplement the Micro Finance Institutions’ growth,” added Mammen.

Jaikish, GM, Reserve Bank of India (Goa) revealed various deterrent factors like complex and time-consuming loan application procedures, delays in processing, record maintenance of the formal financial institutions and financial illiteracy that prevent the small customers to avail of the benefits provided by the formal microfinance sector. “Customers approach other micro finance institutions, eventually leading to a loss of a major chunk of business to the banks. Hope banks realise this soon,” he said.

Manguirish Pai Raiker, MSME Board member and Advisor, WTC Goa, revealed that India is tenth largest in terms of nominal GDP and third largest by PPP model in the world. Speaking on MUDRA’s role in proliferating the Goan MSME sector, he added that last year around `399.33 crore was sanctioned, out of which `376.04 crore was disbursed to 45,471 applicants. “The time-consuming registration process for small units has now been reduced to one page using the Udhyog Aadhar portal under the Make in India flagship brand,” he informed.

G S R Murthy, Manager, SIDBI, addressed the participants with current status of microfinance loans disbursed in Goa and their plans to cater to the needs of the entrepreneurship development.

Earlier, A O Kuruvilla, Advisor, WTC Mumbai, welcomed the guests and participants present at the event. “WTC Goa was established with the aim to promote the Goan MSME sector owing to its crucial role in the country’s GDP, employment generation and provide a global platform to the local businesses to widen their scope,” he said.

From Left: Jaikish, GM, Reserve Bank of India (Goa), A O Kuruvilla, Advisor, WTC Mumbai Manguirish Pai Raiker, Advisor, WTC Goa and G S R Murthy, Manager, SIDBI,

From Left: Jaikish, GM, Reserve Bank of India (Goa), A O Kuruvilla, Advisor, WTC Mumbai Manguirish Pai Raiker, Advisor, WTC Goa and G S R Murthy, Manager, SIDBI,

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