Business and Economy Current Affairs
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.
India was formally inducted as 69th shareholder of European Bank for Reconstruction and Development (EBRD). This comes after entire membership process completed recently and after EBRD’s board of governors, which represents all existing shareholders voted unanimously in favour of India’s application in March 2018. India had applied for EBRD membership in December 2017.
India being shareholder, will only take shareholding in EBRD and will not be recipient of EBRD financing. But it may benefit India indirectly through EBRD projects or if Indian companies invest alongside the bank. It will pave way for more joint investment with Indian companies across EBRD’s regions of operation. It opens up further joint investment prospects for India in markets such as Central Asia, Egypt and Jordan.
European Bank for Reconstruction and Development (EBRD)
EBRD is a multilateral developmental investment bank. It was established in 1991 after fall of Berlin wall to promote private and entrepreneurial initiative in emerging Europe. It is owned by 65 countries and two EU institutions. It is headquartered in London, United Kingdom.
It initially focused to help former Communist states build their economies after the Cold War. Later it expanded to support development in more than 30 countries from central Europe to central Asia. Now it works only in countries that are committed to democratic principles using investment as tool to build market economies.
It invests in 38 emerging economies across three continents (North America, Africa, Asia and Australia) with predefined set of criteria that aim to make its countries more competitive, better governed, greener, more inclusive, more resilient and more integrated.