Visakhapatnam, March 6 -- Union Finance Minister Nirmala Sitharaman and Minister of State, Finance Pankaj Chaudhary launched the New Credit Assessment Model based on the scoring of digital footprints of MSMEs during the post-budget interaction here on Thursday.
The credit assessment model for MSMEs based on digital footprints is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. IT will also cover MSMEs without a formal accounting system.
It was announced in the Union Budget 2024-25 that public sector banks (PSBs) will build their in-house capability to assess MSMEs for credit, instead of relying on external assessment. PSBs will develop a new credit ass...