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Time of India
5 hours ago
- Business
- Time of India
ET Make in India SME Regional Summits: How IDBI Bank is supporting Surat's MSMEs
Live Events Personal cash flow management: Promoters must handle cash flow personally rather than delegating this critical function Avoid fund diversion: Never use short-term working capital for long-term investments Personal wealth planning: Regularly set aside 0.5-1% of profits to build personal reserves as a safety net. The ET Make in India SME Regional Summits reached their fifth destination of 2025 on July 18, arriving in Surat to spotlight one of India's most critical industrial hubs. As the nation's leading platform for hyperlocal micro, small, and medium enterprise ( MSME ) engagement, these summits create vital connections between enterprises, industry enablers, and policy architects. The carefully-curated gatherings deliver precision networking that acknowledges the distinct advantages and challenges facing each regional the theme 'Make in Surat, scale for the world', the edition zeroed in on a city uniquely positioned at the intersection of traditional industrial strength and modern economic transformation. With 90% of the world's diamonds processed here through approximately 4,000 diamond factories and 30 million metres of fabric produced daily, Surat demonstrates unparalleled industrial concentration. The city's remarkable efficiency is rooted in the fact that it accounts for 25% of Gujarat's GDP despite accounting for less than 11% of the state's geographical area. And at the heart of Surat's growth are the thousands of MSMEs that form the backbone of its the unique needs of Surat's diverse MSME landscape, the summit's banking and lending partner IDBI Bank has developed a comprehensive suite of specialised services designed to address everything from cash flow management to foreign exchange risks. Speaking at the ET SME Summit - Surat, IDBI Bank Executive Director Nagaraj Garla outlined how the institution is supporting local entrepreneurs with tailored MSMEs, effective cash flow management determines the difference between success and failure. IDBI Bank has introduced a technology-enabled product that leverages Account Aggregator (AA) and digital end-to-end money lending infrastructure, enabling loan decisions within 10-15 minutes. Such rapid-fire lending addresses one of the most pressing concerns for small businesses operating in seasonal industries:"Cash flow management is absolutely critical," explained Mr. Garla. "If you were to identify one factor that distinguishes successful MSMEs from the rest, it's the effective management of cash flow."The bank also offers products to help MSMEs manage both receivables and payments, including participation in the TReDS and GeM Sahay platforms. Both allow businesses to quickly access funds against invoices, providing immediate liquidity when needed diamond industry faces unique challenges, particularly in managing foreign exchange risks and global payment uncertainties. IDBI Bank has positioned specialised treasury teams in Surat, Ahmedabad, and Mumbai to provide expert guidance on forex products, including forward contracts, options, and currency export-focused solutions include packing credit for pre-shipment funding, post-shipment credit in both INR and foreign currency, and ECGC-backed products. With new Free Trade Agreements being signed, particularly in textiles, the bank emphasises the importance of professional forex risk management for aspiring global banking usually requires substantial collateral, creating barriers for first-generation entrepreneurs and asset-light businesses. At the ET Make in India SME Regional Summit - Surat, Mr. Garla explained that IDBI has adapted to changing times, leveraging government schemes like CGTMSE coverage (extending up to ₹10 crore for most businesses and ₹20 crore for exporters and startups) and the new Individual Guarantee Scheme for capital expenditure up to ₹100 crore."While collateral remains important, its role has significantly reduced," he noted, acknowledging that viable businesses can now access funding without traditional security in the evening, IDBI Bank General Managers CS Arya and Sherine Mendez demonstrated how the institution has transformed its traditional industrial development expertise into a comprehensive MSME-focused banking ecosystem. This philosophy extends to traders, vendors, dealers, and entrepreneurs, ensuring that regardless of scale or profession, every enterprise finds appropriate financial presentation at the ET SME Summit Surat focused on the following:1) Innovation-driven working capital solutionsIDBI Bank has two products that eliminate traditional banking friction. MSME Express offers instant loan sanctions up to ₹25 lakh without requiring branch visits or prior banking relationships, while the PSU Supplier Loan provides collateral-free financing ranging from ₹40,000-₹10 lakh, with instant disbursal upon purchase order verification. These products reflect the bank's commitment to leveraging technology for seamless financial access, supported by robust trade finance capabilities that process approximately 200,000 invoices monthly across various platforms, maintaining a 5% market share in supply chain finance.2) Sector-specific expertise and global reachIDBI's sectoral specialisation spans services, manufacturing, construction equipment, healthcare, and food processing, offering both traditional products like working capital and letters of credit alongside innovative solutions such as trade credit and port international capabilities are equally impressive, providing export finance solutions in over 100 currencies, forex risk management, and collateral-free loans up to ₹10 crore under CGTMSE. This is reinforced by dedicated infrastructure, including specialist MSME branches, trained relationship managers, and centralised processing from over three decades of experience, Mr. Garla wrapped up his fireside chat by sharing three critical success principles for MSME entrepreneurs:As Surat continues to evolve as an MSME powerhouse, IDBI Bank demonstrated how financial institutions can adapt their services to meet the unique needs of regional industrial clusters. The ET Make in India SME Regional Summit - Surat was the perfect platform to showcase a broader strategy of understanding local business ecosystems and developing solutions that address specific industry challenges, from the diamond merchant managing currency fluctuations to the textile exporter seeking working capital during peak seasons. The ET Make in India SME Regional Summits , ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
Hans India
a day ago
- Business
- Hans India
India sees over 65,000 crore digital transactions worth Rs 12,000 lakh crore in last 6 fiscals
Over 65,000 crore digital transactions have taken place in the last six financial years (FY20 to FY25), amounting to more than Rs 12,000 lakh crore, the Parliament was informed on Monday. The government has been closely working with different stakeholders including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintechs, banks and state governments to increase the adoption rates of digital payments in the country including in tier-2 and tier-3 cities, said Pankaj Chaudhary, Minister of State for Finance, in a written reply to a question in Lok Sabha. RBI has set up a Payments Infrastructure Development Fund (PIDF) in 2021 to encourage the deployment of digital payments acceptance infrastructure in tier-3 to 6 cities, northeastern states and Jammu & Kashmir, the minister said. The minister said that as of May 31, 2025, around 4.77 crores digital touch points have been deployed through PIDF. The RBI has developed the Digital Payments Index (RBI-DPI) to measure the extent of digitisation of payments across the country. As a result, more people are able to access formal credit channels, which not only empowers economic participation but also brings more entities into the formal financial ecosystem. Digital platforms like UPI have enabled citizens, including small vendors and rural users, to accept digital payments, reducing cash dependency and increasing formal economic participation, the minister highlighted. As per the latest data, the RBI-DPI index stood at 465.33 for September 2024, reflecting continued growth in digital payment adoption, infrastructure, and performance across the country. In order to support small businesses and MSMEs in adopting digital payment systems to expand their customer base and improve efficiency, various initiatives have been taken by the government, RBI and National Payment Corporation of India (NPCI) from time to time, the minister said. These include, among other things, the rationalisation of the Merchant Discount Rate (MDR) for Debit Card Transactions, the Trade Receivables Discounting System (TReDS) guidelines that enable MSMEs to receive competitive discounts on their invoices on the TReDS platform, and an incentive programme for small merchants to promote low-value BHIM-UPI transactions. The growing adoption of digital payments has revolutionised access to financial services, particularly for underserved and unserved communities. By enabling seamless, traceable transactions through platforms like UPI, digital payments have created a robust financial footprint for individuals and businesses, the minister stated.
India.com
a day ago
- Business
- India.com
India Records Over 65,000 Crore Digital Transactions Worth Rs 12,000 Lakh Crore From FY20 to FY25
New Delhi: Over 65,000 crore digital transactions have taken place in the last six financial years (FY20 to FY25), amounting to more than Rs 12,000 lakh crore, the Parliament was informed on Monday. The government has been closely working with different stakeholders including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintechs, banks and state governments to increase the adoption rates of digital payments in the country including in tier-2 and tier-3 cities, said Pankaj Chaudhary, Minister of State for Finance, in a written reply to a question in Lok Sabha. RBI has set up a Payments Infrastructure Development Fund (PIDF) in 2021 to encourage the deployment of digital payments acceptance infrastructure in tier-3 to 6 cities, northeastern states and Jammu & Kashmir, the minister said. The minister said that as of May 31, 2025, around 4.77 crores digital touch points have been deployed through PIDF. The RBI has developed the Digital Payments Index (RBI-DPI) to measure the extent of digitisation of payments across the country. As a result, more people are able to access formal credit channels, which not only empowers economic participation but also brings more entities into the formal financial ecosystem. Digital platforms like UPI have enabled citizens, including small vendors and rural users, to accept digital payments, reducing cash dependency and increasing formal economic participation, the minister highlighted. As per the latest data, the RBI-DPI index stood at 465.33 for September 2024, reflecting continued growth in digital payment adoption, infrastructure, and performance across the country. In order to support small businesses and MSMEs in adopting digital payment systems to expand their customer base and improve efficiency, various initiatives have been taken by the government, RBI and National Payment Corporation of India (NPCI) from time to time, the minister said. These include, among other things, the rationalisation of the Merchant Discount Rate (MDR) for Debit Card Transactions, the Trade Receivables Discounting System (TReDS) guidelines that enable MSMEs to receive competitive discounts on their invoices on the TReDS platform, and an incentive programme for small merchants to promote low-value BHIM-UPI transactions. The growing adoption of digital payments has revolutionised access to financial services, particularly for underserved and unserved communities. By enabling seamless, traceable transactions through platforms like UPI, digital payments have created a robust financial footprint for individuals and businesses, the minister stated.
Fashion Value Chain
22-07-2025
- Business
- Fashion Value Chain
KredX's DTX Platform and Canara Bank Partner to Supercharge Digital Trade Finance for Indian Businesses
KredX, India's leading integrated cash flow and supply chain finance platform, today announced a strategic partnership with Canara Bank, one of Indias prominent public sector banks. This collaboration aims to significantly broaden the reach of digital trade receivable discounting through KredX's RBI-licensed TReDS platform, Domestic Trade Exchange (DTX), with a specific focus on driving deeper financial inclusion for businesses across the country. The partnership reinforces KredX's long-standing commitment to enhancing financial inclusivity across the supply chain ecosystem. Over the past decade, KredX has played a pivotal role in integrating both MSMEs and large enterprises into formal financial networks. The DTX platform helps address systemic challenges such as delayed payments, high borrowing costs, and collateral-heavy financing, particularly for service providers, by enabling faster, more affordable, and collateral-free access to working capital. Canara Banks participation on the KredX DTX platform marks a pivotal step towards building a more robust, accessible, and inclusive supply chain finance ecosystem. As one of the oldest and largest public sector banks in India, Canara Bank brings a strong public sector presence and legacy to the partnership, with a robust network of branches across the country. By combining Canara Bank's extensive reach and deep understanding of diverse business needs with KredX's cutting-edge, technology-first infrastructure, this partnership will substantially enhance working capital access for Micro, Small, and Medium Enterprises (MSMEs) across all sectors and scales. This aligns seamlessly with the governments vision of increasing financial inclusion for businesses, empowering a wider array of enterprises to thrive. Manish Kumar, Founder and CEO, KredX, stated, 'We are thrilled to welcome Canara Bank as a financing partner on KredX's technology-first TReDS platform, DTX. Canara Bank's extensive presence, deep-rooted customer focus, commitment to financial inclusion, and increasingly, its embrace of digital innovation and diversification of services, make it an invaluable addition to our expanding ecosystem. This partnership is a significant step towards digitisation and democratising trade finance, enabling enterprise buyers and MSME partners to access crucial working capital, with Canara Banks increased funding capacity driving nationwide financial inclusion.' KredX's DTX platform, approved under the RBI's TReDS framework, offers a digital-first solution for end-to-end trade finance. Connected to 50+ financiers and designed to enable bidding on trade receivables, DTX provides businesses with access to the lowest cost of finance, an intuitive user experience, and seamless execution. DTX also enables suppliers to access working capital instantly, while allowing buyers to optimise cash flows and build more resilient supply chains. By integrating intelligent automation, real-time processing, and intuitive workflows, DTX ensures a frictionless experience for buyers, sellers, and financiers alike. The initiative aligns with the Government of India's mandate for companies with a turnover exceeding Rs. 250 crore to onboard TReDS and integrate with the GSTN, promoting digital financing and regulatory compliance. This also supports KredX's goal of achieving Rs. 15,000 crore in disbursals and empowering 15000 MSMEs by the end of this fiscal year. As India's leading integrated supply chain finance provider, KredX offers a comprehensive suite of solutions including early payments, accounts payable and receivable financing, and cash flow automation. These capabilities empower businesses to unlock working capital, drive operational efficiency, and maintain compliance across processes. KredX continues to expand its partner network of banks, NBFCs, and financial institutions to strengthen India's digital supply chain infrastructure and improve access to capital across the ecosystem. In a significant move to further this mission, KredX is also engaging with State Governments to support MSMEs by raising awareness around TReDS and providing TReDS onboarding assistance. This strategic engagement will revolutionize MSME onboarding, reduce friction, improve data accuracy, and enable KredX to provide more tailored solutions to a wider base of MSMEs nationwide. About KredX KredX is India's leading integrated supply chain finance platform, and among the very few entities licensed by both the Reserve Bank of India (RBI) and the International Financial Services Centres Authority (IFSCA). With this dual regulatory backing, KredX offers end-to-end working capital solutions across both domestic (TReDS) and cross-border (global factoring) transactions, serving MSME suppliers as well as large corporate anchors. Being a pioneer in supply chain financing for a decade, KredX has been enabling businesses to unlock working capital and optimise cash flows through a full stack of digital finance solutions for modern supply chains. With platforms like DTX (Domestic Trade Exchange), GTX (Global Trade Exchange), and CMS (AI-powered Cash Management Solutions). Backed by marquee investors including Tiger Global, Sequoia Capital India, and Prime Venture Partners, KredX is at the forefront of building future-ready, tech-led financial infrastructure for B2B supply chain ecosystems. To know more, visit KredX's Domestic Trade Exchange (DTX) site: About Canara Bank Widely known for customer-centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka. The Bank has gone through the various phases of its growth trajectory over a hundred years of existence. Growth of Canara Bank was phenomenal, especially after nationalisation in the year 1969, attaining the status of a national-level player in terms of geographical reach and clientele segments. The Bank diversified its business operations throughout the 1980s. A significant achievement came in June 2006, when it celebrated 100 years of service within the Indian banking industry. Several memorable milestones have characterised the eventful journey of the Bank. Currently, Canara Bank is a leading institution among Indian banks. Over the years, the Bank has been scaling up its market position to emerge as a major Financial Conglomerate with as many as thirteen subsidiaries/sponsored institutions in India and abroad. As of September 2023, Canara Bank services over 11.19 crore customers through a network of 9,518 branches and 12,118 ATMs/Recyclers spread across all Indian states and Union Territories.
Time of India
11-07-2025
- Business
- Time of India
How satellite-based alternative data can revolutionize MSME credit access
Indian MSMEs are key drivers of our economy due to their significant contribution in the Indian financial ecosystem. Indian MSMEs in recent times are witnessing a strong increase in formal credit, yet there is a long distance to reach their entire potential. As per media news, as of end March 2025, total loans disbursed to MSMEs had risen to ₹40.4 lakh crore, a 20% rise from ₹33.6 lakh crore in March 2024, and a significant leap from ₹28.3 lakh crore in March 2023. However, despite this growth, a report by Avendus Capital highlights that only about 14% of MSMEs have access to credit. The remaining population depends on informal, often costly and exploitative sources of credit, which severely limit their potential for growth and expansion. This exclusion builds up a two-way challenge. MSMEs find it difficult to establish creditworthiness in the absence of proof of income or collateral, whereas institutions like banks, NBFCs, and fintechs have to bear high costs and operational challenges in determining risk by way of manual checks and field visits. These are not scalable solutions, particularly for small businesses within remote or semi-urban regions. India's Financial sector has reacted by innovative use of structures such as the Account Aggregator ecosystem, Udyam registration information, GST filing, and infrastructure like TReDS. Alternative models of data based on utility bill payments, supplier invoices, and transaction streams have made credit accessible to a subset of digitally connected MSMEs. Those solutions tend to benefit mainly units that already possess some digital or financial presence. The real challenge lies in accessing the "missing middle', the vast majority of MSMEs that are running but invisible to mainstream or digital credit systems , especially in rural and semi-urban locations. Several of these businesses operate in small-scale industries, service industries, or value chains linked with agriculture, etc. They may have a regular income and healthy cash flow but lack any official financial papers or collateral to establish their creditworthiness. It is here that emerging innovations in alternate credit models can make the biggest difference. One of the most promising innovations here is the application of satellite data . Satellite intelligence furnishes site-specific, real-time data that can verify business activity on the ground. Lenders can see physical signs such as land use, production cycles, infrastructure upgrades, and even local climatic or environmental risks through the help of high-resolution imaging and geospatial analytics. These signs are reliable surrogates for company health, especially where paperwork is non-existent or unreliable. For example, a Kirana shop in a rural or semi-urban setting might not have formal books of accounts or digital records of transactions. But satellite imagery can still identify evidence of steady business activity like regular patterns of foot traffic, stock deliveries, or even physical enlargement of the facility over time. These visual cues, when interpreted in context, will allow lenders to estimate the size of operations, stability, and growth prospects of the store, generating useful inputs for credit decisioning even in the absence of conventional financial information. Blending satellite data with other alternative sources, such as supply chain contacts, utility bill payments, mobile phone behavior, and geolocation history, taps into the true power of this idea. Together, they establish a comprehensive, multi-dimensional credit profile more dynamic and representative of true company performance than mere static financial statements. By integrating these diverse datasets, lenders can significantly enhance the accuracy and inclusiveness of credit scoring models enabling quicker, fairer, and more informed lending decisions. This approach empowers underserved MSMEs to access working capital and build a credit history that can eventually bring them into the formal financial system. But introducing alternative credit models and satellite intelligence is no easy task. Transparency, ethical application, and data privacy have to be a certainty. To build scalable, secure, and fair lending frameworks, it also necessitates cross-sector collaboration between fintechs, banks, data providers, and regulators. By merging these varied data sets, lenders can effectively improve the precision and comprehensiveness of credit scoring models, supporting quicker, more unbiased, and data-led lending decisions. This strengthens under-banked MSMEs' ability to secure working capital, establish financial credibility, and transition over time into the formal financial system. The silver lining is that the ecosystem is on the right path. With upcoming technologies such as satellite intelligence coming in and being more open to integration, the sector does have a serious chance to redefine credit inclusion on a scale. Through innovation and partnerships, we can derive the full potential of India's MSMEs fueling job growth, entrepreneurship, and inclusive economic growth for the long term.
