Union Budget 2023: In an attempt to give a boost to enterprises, Union Finance Minister Nirmala Sitharaman said that a revamped Credit Guarantee Scheme (CGS) for MSMEs with an outlay of Rs 9,000 crore will be launched from April 1.
"Credit guarantee for MSMEs - Rs 9000 crores infused in the corpus which will allow additional collateral-free credit of Rs 2 lakh crores; to be effective from 1st April 2023," she said in Parliament.
Meanwhile, the government and government undertakings would return 95% of the forfeited sum related to bid or performance security to MSMEs in circumstances where they fail to complete contracts throughout the Covid term, providing relief to MSMEs.
Govt to promote financial stability and effective flow of credit
Further, the government has also decided to establish a National Financial Information Registry to promote financial stability and an effective flow of credit. Sitharaman also disclosed that financial sector authorities would be required to conduct a thorough assessment of current rules.
She added that the government will also set up a single window system for registrations and approvals in IFSC Gift City and that an integrated IT platform would be developed for reclaiming unclaimed profits and shares.
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According to the Finance Minister, a Central Processing Centre (CPC) would also be set up for faster response to companies filing forms under the Companies Act, Sitharaman said. She also said a one-time new small saving scheme Mahila Samman Saving Certificate will be made available for two years up to 2025.
(With inputs from agencies)