MSME New MSME credit assessment model for PSBs likely to be launched in March 2025: Report
New Delhi/IBNS: The new micro, small and medium enterprise (MSME) credit assessment model, based on digital footprints for public sector banks (PSBS), is expected to be unveiled by the end of March next year (2025), Business Standard reported, citing sources in the know.
"Almost half of the work has been completed, and we expect a launch by the end of this financial year (202425/FY25)," an official of a public sector bank was quoted as saying by Business Standard.
In the Union Budget for FY25, Finance Minister Nirmala Sitharaman proposed that PSBs develop in-house capabilities to assess MSMEs for credit, moving away from external assessments.
Indicating that PSBs would lead the development or acquisition of a new credit assessment model based on scoring MSMEs' digital footprints, Sitharaman said, "This is expected to be a major improvement over traditional credit assessment methods that rely solely on asset or turnover criteria."
"It will also encompass MSMEs without formal accounting systems," she added.
Talking about the current status of the new MSME credit assessment model, another senior official told the Business Standard, "Work is underway, and after its completion, we will conduct an audit and acceptance test."
"The exact dates are yet to be determined, as we aim to ensure all aspects are thoroughly covered," the official added.
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