Framework for accreditation of credit counsellors on Cards : RBI

Framework for accreditation of credit counsellors on Cards : RBI


In order to facilitate the MSME (Medium Small and Micro Entrepreneurs), in getting a hassle free credit, the Deputy Governor of RBI Mr. S S Mundra announced that a framework of accreditation of Credit Counsellors will be brought in place.  These Credit Counsellors will facilitate credit availability for small businessmen.

SMSE are entrepreneurs who possesses very little credit background and do not have adequate exposure in preparing financial statements. These counsellors will help the small borrowers in preparation of project reports which will otherwise help banks in making better credit decisions.  P2P (Peer to Peer) companies are one who receives loans as an alternate form of low lending which could reach the needy personnel where other sources have constraints in reaching.  New companies have entered the MSME lending arena in the form of P2P companies who through an on line platform reach the borrowers in providing unsecured loans and more so provide receivable financing which is the recent finding.

RBI now should regulate these entities without affecting their innovative ideas.  Here RBI has licensed three units for operation of Trade Receivables Discounting System (TReDS). This system is proposed to help financing of Receivables of MSME enterprises from Corporate and other buyers which includes Government Departments and Public Sector Undertakings through multiple financiers.

The main objective here would be :

  1. To Create Electronic Bill Factoring exchanges which will electronically accept and settle bills where MSMSEs will be enabled to encash their receivables without delay.
  2. To remove the credit constraints of MSMEs.

The current end of financial year would see this operative which will be made compulsory initially for the Corporate and PSUs and the Government Departments in future.

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