Contactless banking to be new paradigm: Financial Services Secretary

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New Delhi, Sep 30: In a bid to bolster credit growth, the Finance Ministry is planning to expand the scope of the recently launched portal that enables MSMEs to obtain a loan of up to Rs 1 crore within an hour, a senior official said.
“We have started this web portal www.psbloansin59minutes.com for MSME borrowers but going forward more loan products would be onboarded on the portal. It may include personal loan, home loan etc,” Financial Services Secretary Rajiv Kumar said.
Based on the experience of this automated loan processing system, other products could be onboarded, he said, adding “contactless banking is going to be the new paradigm as it fosters transparency”.
Speaking about the new portal launched by Finance Minister Arun Jaitley last week, Kumar said it will help improve credit flow to the MSME sector which is the backbone of the country’s economy in terms of output, exports and employment generation. This system will stabilise and lay the foundation of a paradigm shift in the way banking is done in the next 6-7 months, he said. Going forward, he said, linking of data will cut down lapses and information asymmetry. Once data points are connected, it will end the era of giving false information like different income statement to banks and tax authorities.
“MSMEs are vital for India’s economic ascension. Several initiatives including customised products and strategies as per their needs and automated loan processing have been introduced to achieve faster turnaround and accelerate MSMEs’ growth,” he said.