Arun Jaitley Current Affairs - 2019

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Government launches Financial Inclusion Index

Union Minister of Finance and Corporate Affairs Arun Jaitley launched Financial Inclusion Index in New Delhi. It was launched after his Annual Performance Review Meeting with CEOs of Public Sector Banks (PSBs).

Financial Inclusion Index (FII)

The annual FII will be released by Department of Financial Services (DFS), Ministry of Finance. It will be measure of access and usage of basket of formal financial products and services that includes savings, remittances, credit, insurance and pension products.

The index has three measurement dimensions (i) Access to financial services (ii) Usage of financial services and (3) Quality. It will serve as single composite index that will give snap shot of level of financial inclusion which will guide Macro Policy perspective.

Significance of index: Its various components will help to measure financial services for use of internal policy making. It can be used directly as composite measure in development indicators. It will also enable to fulfil G20 Financial Inclusion Indicators requirements. It will also facilitate researchers to study the impact of financial inclusion and other macro-economic variables.

Finance Ministry launches web portal to grant loans to MSMEs within hour

Union Finance Minister Arun Jaitley launched portal www.psbloansin59minutes.com to enable micro, small and medium enterprises (MSMEs) to get in-principle approval of loans within hour without need for branch visit.

The web portal will enable in principle approval for MSME loans up to Rs. 1 crore within 59 minutes from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs). It also simplifies decision making process for loan officer as final output provides summary of credit, valuation and verification on a user-friendly dashboard in real time.

PSB loans in 59 minutes Portal

The portal is strategic initiative of SIBDI led five PSB consortium incubated under aegis of Department of Financial Services (DFS), Ministry of Finance. It sets new benchmark in loan processing and reduces turnaround time from 20-25 days to 59 minutes. Subsequent to this in principle approval, the loan will be disbursed in 7-8 working days.

The portal integrates advanced fintech to ensure seamless loan approval and management in MSME banking credit space. The loans under it are undertaken without human intervention till sanction and or disbursement stage. It has User Friendly Platform, which omits need for physical submission of any physical document for in-principle approval.

It also uses sophisticated algorithms to read and analyse data points of MSME borrower from various sources such as IT returns, GST data, bank statements, MCA21 etc. in less than hour. It also captures applicant’s basic details using smart analytics from available documents.