Union MSME Ministry launched Online Finance Facilitation Centre for SMEs
To facilitate easier finance to SMEs, an Online Finance Facilitation Centre was launced by the Confederation of Indian Industry (CII).
Union Minister for Micro, Small and Medium Enterprises (MSMEs) Kalraj Mishra on 16 June 2014 launched Online Finance Facilitation Centre (OFFC) for Small and Medium Enterprises (SMEs). OFFC is an initiative of the Confederation of Indian Industry (CII). The Centre was launched with an objective to facilitate access to finance and credit for SMEs.
About Online Finance Facilitation Centre (OFFC)
• The centre will operate as a one-stop-shop by providing collective financing options for SMEs from various major financial institutions
• It will also facilitate the SMEs across the country with documentation and preparation of bankable project proposals.
• The complete Know Your Customers (KYCs) norm will help Banks / financial institutions to render quick delivery.
OFCC in order to facilitate credit to SMEs will sign Memorandum of Understanding with seven financial institutions. These are Indian Bank, Indian Overseas Bank, Federal Bank, Muthoot Fincorp Ltd, Religare Finvest, DCB Bank, EXIM Bank and State Bank of Travancore.
This move of CII came in line with the recommendation of an Inter-ministerial panel on Accelerating Manufacturing in Micro, Small & Medium Enterprises Sector headed by Madhav Lal.
The panel had recommended that ministries and departments may consider engaging industry associations to serve as a single window for hand-holding MSMEs and help in pursuing banks to increase credit flow into the sector.