Swavalamban Crisis Responsive Fund (SCRF) | UPSC

Spread the love

Swavalamban Crisis Responsive Fund (SCRF) _ UPSC

Swavalamban Crisis Responsive Fund (SCRF) | UPSC

      HEADLINES:

Historic Interventions made by the Central Government to Ensure Timely Payments to MSMEs

      WHY IN NEWS:

MSME Ministry takes lead in helping the MSMEs get their dues

MINISTRY? :- Ministry of Micro,Small & Medium Enterprises
SYLLABUS COVERED: GS 3:MSME

      ISSUE: 

MSME Ministry alerts MSMEs to beware of fake websites charging money in the name of registration; and re-iterates that registration be done on Govt website only 

SWAVALAMBAN CRISIS RESPONSIVE FUND

  • MSME sector has been adversely affected due to the ongoing Covid-19 pandemic.
  • The Bank has since set-up the captioned fund to support free onboarding of the MSMEs on the Trade Receivables Discounting System (TReDS) Platform.

MSMEs were supposed to pay on-boarding charge of Rs. 10,000/- to the concerned exchanges who are part of the TReDS mechanism.

AIM

The fund waives off MSMEs joining/registration fees such that they derive benefits on the TReDS Platform.

    To address the financing related issues faced by MSMEs in India, RBI in 2014 introduced the concept of TReDS.

TIME FRAME

SCRF funds are valid upto March 31, 2021.

BENEFITS TO THE MSME’s

  • Enables MSME suppliers to get quick access to low-cost finance
  • Without Recourse
  • Collateral Free
  • Quick Payments
  • Lower Cost of Funds

Swavalamban Crisis Responsive Fund (SCRF) | UPSC

TREDS PLATFORM

  • TReDS is an institutional mechanism set up in order to facilitate the trade receivable financing of MSMEs from corporate buyers through multiple financiers.

It is a mechanism of trade receivables financing for MSMEs on a secure digital platform.

  • It is an answer to the cash flow issues of the MSMEs in India.
  • TReDS gives effective solution to enable MSME to take the next growth leap & reap emerging opportunities.

SEAMLESS INTEGRATION

  • For the ease of business of MSMEs, Ministry’s portal for new registration of Udyam is being integrated with TReDS and GeM in a seamless manner.
  • Therefore, it would be just enough and useful to register as MSME on the Government portal.
  • Integration with TReDS and GeM mechanisms will happen automatically.

To re-iterate, registration as MSME/Udyam is online and totally free of cost.

  • It is also paperless and fully based on self-declaration.
  • No proof or documents are required.
  • As on 1st September, close to 4.00 lakh registrations have already taken place since the new system was launched in July.

      IASbhai WINDUP: 

OTHER EFFORTS

  • To help the MSMEs in this long standing problem, Government of India has taken a series of measures recently.
  • AtmaNirbhar Bharat package, had announced that Government entities should make such payments within 45 days.

The pending amounts are expected to be in the normal course of business and below 45 days.

  • Active follow up is being done with the State Governments for payment and regular reports.
     SOURCES:PIB | Swavalamban Crisis Responsive Fund (SCRF) | UPSC

DISCOVER MORE : GS-3

If you liked this article, then please subscribe to our YouTube Channel for Daily Current Affairs , Editorial Analysis & Answer writing video tutorials. You can also find us on Twitter and Facebook.


Spread the love

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

IASbhai will use the information you provide on this form to be in touch with you and to provide updates and marketing.