PIB Summary- 2nd August, 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Self-Reliant India Fund

Context
Recently, the Minister of State for Micro Small and Medium Enterprises provided valuable insights into the Self Reliant India Fund during a written reply in the Lok Sabha.

Self-Reliant India (SRI) Fund: Boosting MSME Growth and Innovation

• The Indian government introduced the Self-Reliant India (SRI) Fund as part of the Atmanirbhar Bharat package, allocating Rs. 50,000 crores for equity infusion in Micro, Small, and Medium Enterprises (MSMEs).
• The fund operates with a mother-fund and daughter-fund structure, with the National Small Industries Corporation (NSIC) Venture Capital Fund Limited (NVCFL) designated as the Mother Fund for implementation.

Objectives of the SRI Fund

• Provide equity funding to viable and high-potential MSMEs, facilitating their growth and transformation into larger enterprises.
• Strengthen the MSME sector’s contribution to the Indian economy by promoting innovation, entrepreneurship, and competitiveness.
• Create a conducive environment for technological upgradation, research and development, and enhanced market access for MSMEs.

Composition of the SRI Fund

• The SRI Fund, with a total of Rs. 50,000 crores, is structured as follows:
  • Rs. 10,000 Crore allocated by the Government of India for initiating equity infusion in selected MSMEs.
  • Rs. 40,000 Crore sourced through Private Equity (PE) and Venture Capital (VC) funds, leveraging the expertise and investment of the private sector.

MSME Card

Context
Recently, the Ministry of Micro Small and Medium Enterprises (MSME), in association with the National Payment Corporation of India (NPCI) had launched the MSME RuPay Credit Card on a pilot basis, pan-India for Udyam registered MSMEs.

MSME RuPay Credit Card

• The MSME RuPay Credit Card is designed to provide a simplified payment mechanism to Micro, Small, and Medium Enterprises (MSMEs) for their business-related operational expenses.
• This card allows MSMEs to make digital payments, pay utility bills, taxes, and other statutory payments conveniently.

Interest-Free Credit Period

• MSME borrowers using the RuPay Credit Card can benefit from an interest-free credit period for their business spending, subject to the policies set by the issuing bank.
• This feature allows MSMEs to manage their cash flow more effectively and meet their financial needs without incurring immediate interest charges.

NPCI – National Payments Corporation of India

• The National Payments Corporation of India (NPCI) is an umbrella organization responsible for operating retail payments and settlement systems in India.
•  It was established as a joint initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
• NPCI’s primary goal is to create a robust and efficient Payment & Settlement Infrastructure in India, facilitating secure and seamless electronic transactions for various payment services.