News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay  » Business » How Postmen Can Help Micro-Entrepreneurs

How Postmen Can Help Micro-Entrepreneurs

By Harsh Kumar
July 11, 2024 10:12 IST
Get Rediff News in your Inbox:

'The dakiyas will be our partners, receiving credit proposals from micro-enterprises at the grassroots level.'

IMAGE: A postman on his way to deliver mail in New Delhi. Photograph: Adnan Abidi/Reuters

Metros and big cities may now be off the map for them, but humble postmen and postwomen still know villages like the back of their hands.

The Small Industries Development Bank of India (Sidbi) now wants them to help it extend credit to micro-entrepreneurs. It has now partnered with India Post Payments Bank (IPPB) to carry out the task.

"This initiative aims to provide finance to micro-level entrepreneurs using the dakiya (postmen and postwomen) network. The dakiyas will be our partners, receiving credit proposals from these micro-enterprises at the grassroots level," said Sudatta Mandal, Sidbi deputy managing director at the CII Growth Summit in New Delhi on Wednesday.

Mandal further said that the postmen and postwomen will also assist in monitoring and collection of loans.

"This initiative is likely to commence next month," he added.

A senior official from India Post Payments Bank, who chose not to be named, said, "Due to our lending obligations, we cannot directly lend. Therefore, we are utilising Sidbi to provide the loans.

"Approval from the Reserve Bank of India is still pending."

IPPB services are available across 136,000 post offices in the country, with over 120,000 post offices located in rural areas.

Sidbi is India's principal financial institution dedicated to promoting, developing, and financing micro, small, and medium enterprises (MSMEs).

It plays a critical role in supporting entrepreneurship, economic growth, and financial inclusion across the nation through various programs such as credit guarantee, direct credit, venture capital, digital platforms, and government program management.

A micro-enterprise is defined as one where the investment in plant and machinery or equipment does not exceed Rs 1 crore, and turnover does not surpass Rs 5 crore.

As of December 2023, government data shows there were over 30 million registered MSMEs in the country.

Speaking at the CII event, Ishita Ganguli Tripathy, additional development commissioner, ministry of MSME, highlighted that women's participation in registered MSMEs needs to be increased.

She emphasised leveraging the '7 As' to empower women: Availability, Accessibility, Affordability, Awareness, Accountability, Alliance, and Achievement.

"Educating MSMEs about regulatory requirements and ESG (Environmental, Social and Governance) compliances is essential for their sustainable growth," Ganguli Tripathy stated.

"In this, the government and large enterprises can play an important role to support MSMEs."

Feature Presentation: Ashish Narsale/

Get Rediff News in your Inbox:
Harsh Kumar
Source: source

Moneywiz Live!