SIDBI & IPPB team to fuel development of informal micro enterprises
By Gloria Mathias
India Post Payments Bank (IPPB) and the Small Industries Development Bank of India (SIDBI) have entered into a strategic partnership to promote formal financial services and support services to MSMEs and enterprises in rural and remote areas of India.
The partnership aims to leverage IPPB’s rural reach and deep connection with village-level communities and SIDBI’s lending and credit risk assessment models to reach informal and micro enterprises in rural and remote areas, as may be permitted under the extant regulations.
IPPB shall also support SIDBI’s customers in digitising the payment mechanisms through its merchant onboarding system and collection solutions like UPI, QR-based solutions, etc.
The two institutions will also undertake joint programmes to upgrade the skills of Dak Sevaks in supporting credit and other services to microenterprises. They will jointly work together to identify other areas of mutual interest and undertake various activities to support MSMEs and the MSME ecosystems across the country, with a special focus on informal micro-enterprises.
Speaking on the occasion, Secretary DFS emphasised the potential that the proposed partnership between SIDBI and IPPB holds for furthering financial inclusion in the country, especially by targeting informal and micro enterprises in rural and remote areas.
Sivasubramanian Ramann, said, “We look forward to a fruitful and meaningful partnership with IPPB, which can make a positive impact on millions of informal rural enterprises in the country by improving their access to financial services and financial literacy.”
Shri J. Venkatramu, MD & CEO, IPPB, shared, “The institutional desire to strengthen financial inclusion initiatives and looked forward to the partnership with the principal financial institution for MSMEs in the country.
SIDBI is India’s principal financial institution for the promotion, development, and financing of MSMEs. It plays a critical role in supporting entrepreneurship, economic growth, and financial inclusion across the nation through various programs like credit guarantees, direct credit, venture capital, digital platforms, government program management, etc.
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November 29, 2023
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