Weekly News Snippet - Edition 55

Key highlights:??

MSME:??

1. Enhanced credit guarantee coverage to profit 2.7 million women-led MSMEs: Manjhi.?
2. Telangana launches new MSME policy, plans to spend Rs 4,000 cr in five years to develop the MSME sector.?

Banking:??

1. Banks to play major role in making India developed by 2047: FM Sitharaman.?
2. RBI extends tenure of IDFC First Bank MD V Vaidyanathan for another 3 years.?

Finance:??

1. Our passive funds’ AUM will rise four-fold by FY26: LIC Mutual Fund’s Ravi Kumar Jha.?
2. UPI transaction value surges to ?1,669 lakh crore in first five months of FY 2024-25.? ?

I. MSME:?

Credit Coverage for Women-Led MSMEs:?

Women-owned Micro and Small Enterprises will get enhanced credit guarantee coverage of 90 per cent under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, after its board approved the new guidelines. The decision is expected to benefit 2.7 million women-led MSMEs, Union Minister Jitan Ram Manjhi said.?1? ?

Telangana Government’s focus on MSME:?

Telangana government plans to invest ?4,000 crore over five years to boost MSME development under the "Telangana MSME Policy 2024" said Chief Minister, A Revanth Reddy. The policy focuses on 6 key areas: Land availability, Finance access, Raw material supply, Labor market flexibility, Technology adoption and Market access. The state aims to establish over 25,000 new MSMEs during this period. 2?

II. Banking:?

Bank’s Role in Viksit Bharat 2047:?

While speaking at an event, organized by Bank of Maharashtra, Finance Minister, Nirmala Sitharaman said the Banking sector will have to play a crucial role in driving the agenda of making India a developed nation or Viksit Bharat by 2047. She said banks will be required to give strong momentum to the infrastructure sector, ensure the availability of need-based funding to MSMEs. 3? ?

IDFC First Bank MD’s Tenure Extension:?

The Reserve Bank of India (RBI) has extended the tenure of IDFC First Bank's Managing Director, V Vaidyanathan for another three years, effective from December 19, 2024, to December 18, 2027. He has been leading the bank since December 2018. 4? ?

III. Finance:?

LIC Mutual Fund’s AUM Growth Target:?

LIC Mutual Fund plans to increase the Assets Under Management (AUM) of passive funds in its portfolio by over four-fold to ? 25,000 crore by FY26, its MD and CEO,?Ravi Kumar Jha?tells?Vivek Kumar M. Jha (Press Trust of India). He also reiterated the fund house’s goal of reaching ? 1?lakh crore?AUM by FY26. 5? ?

Digital Payments Surge in FY25 :?

The value of Digital payments has surged to ?1,669 lakh crore in the first five months (April-August) of the current financial year 2024-25, according to Union Finance Ministry. The Ministry stated that the transaction volume of digital payments has reached ? 8,659 crore during the same period. 6?

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Bibliography:?

1. https://www.business-standard.com/industry/news/enhanced-credit-guarantee-coverage-to-profit-2-7-mn-women-led-msmes-manjhi-124091700809_1.html?
2. https://economictimes.indiatimes.com/small-biz/sme-sector/telangana-launches-new-msme-policy-plans-to-spend-rs-4000-cr-in-five-years-to-develop-sector/articleshow/113458114.cms?from=mdr?
3. https://www.business-standard.com/amp/industry/banking/banks-to-play-major-role-in-making-india-developed-by-2047-fm-sitharaman-124091900826_1.html?
4. https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-extends-tenure-of-idfc-first-bank-md-v-vaidyanathan-for-another-3-years/articleshow/113524401.cms?from=mdr?
5. https://www.financialexpress.com/business/banking-finance-our-passive-funds-aum-will-rise-four-fold-by-fy26-lic-mutual-funds-ravi-kumar-jha-3618499/
6. https://www.thehindubusinessline.com/money-and-banking/upi-transaction-value-surges-to-1669-lakh-crore-in-first-five-months-of-fy-2024-25/article68666663.ece