Covid second wave: MSMEs need help again but not the way govt did last time

While players in the financial ecosystem are opening up to the idea of receivables funding for the sector, this market needs a regulator, which a Parliament panel feels only RBI can provide

Valuations of payment gateways for the micro, small and medium enterprises (MSME) are shooting up. These gateways offer bundled services to the MSMEs which include not just receiving payments but also inventory management to help with keeping tax rec­ords. As customers even from mid income groups switch to digital payments for dealing with small shops to roadside vegetable traders, the business for the gateways has boomed.
 
This could be surprising as the package of measures to help the MSMEs last year have made little headway. The “Fund of Funds” has not got even one financial institution interested to give