Government Introduces Digital Credit Assessment Model for MSMEs

The Ministry of Finance has introduced a Credit Assessment Model (CAM) aimed at enhancing the digital appraisal of loans for Micro, Small & Medium Enterprises (MSMEs). This new model utilizes digitally available and verifiable data to facilitate automated loan appraisal processes, ensuring a fair and objective decision-making system for both new and existing MSME borrowers. Additionally, the government, in collaboration with the Reserve Bank of India and the National Payment Corporation of India, has been implementing several measures to promote digital payment solutions. These include incentives for RuPay debit cards and low-value BHIM-UPI transactions and the creation of a Payments Infrastructure Development Fund to deploy payment infrastructure in underserved areas. Moreover, the Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme has been extended, providing increased loan limits and introducing a UPI-linked RuPay Credit Card with cashback rewards for digital transactions.

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