Financial Illiteracy and MSMEs in India

Alternative Perspectives

MSMEs lending and Financial Challenges: Financial illiteracy

Micro, Small and Medium Enterprises embrace an immense contribution to the socio-economic development of the country. MSME is considered as a "Backbone of the Indian Economy" as it contributes nearly 30-40% to GDP and 48% to total exports. Still they are extremely credit-starved. The current addressable credit gap for MSMEs in India is still estimated to be at $397 billion. Low financial literacy related to credit is one of the biggest reasons. Read More

Grassroot Initiatives

Financial Literacy for Micro, Small & Medium Enterprises (MSMEs) in India: Initiative of HDFC Bank
In India, MSMEs face several challenges that prevent them from hitting its full potential, lack of finance being the greatest. One of the reasons behind this is the lack of financial literacy. Financial literacy is defined as the cognitive understanding of financial components and skill such as budgeting, investing, borrowing, taxation and personal financial management. The majority of MSME owners are from education-deprived and poverty-hit regions. HDFC Bank is helping transform the lives of millions of MSMEs through its social initiatives. These initiatives come under the umbrella of 'Parivartan'. The initiatives focus on mainstreaming economically & socially-challenged groups across the country by ushering growth, development and empowerment.
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Data and Trends

IN THE NEWS

Mastercard partners with cooperative bank to support 20,000 Women-Led SMEs

The expansion of the Chamber of Commerce for Rural Women aims to empower over 20,000 women-led small businesses to tap into digital networks for sourcing and selling. Read More

RBI suggests action plan to promote financial education

The Reserve Bank of India (RBI) on Thursday came out with a '5-Core Actions' approach for promoting financial education, which among other things include development of relevant content for school children and adults, community participation and collaboration among various stakeholders. Read More

BRICS Women's Business Alliance: Need for Credit Guarantee Fund, VC Fund to support women entrepreneurs

Credit and Finance for MSMEs: To promote women participation in technology and innovation-led sectors, the alliance recommended BRICS a distance learning educational platform for women to learn different uses of technology and creating access to resources to learn and upskill. Read More

NPCI curates financial literacy book for CBSE students

The textbook covers a wide range of topics related to financial awareness, including teamwork and basic financial principles, as well as Banking, Security, and Digital Payments such as UPI, Cards, Wallets, and more. Read More

EVENT

Unlocking Her Potential Webinar Series on Literacy Led Empowerment of Women: Enabling her towards financial capability | Speaker Shabana Azmi | 22 March 2021

The webinar titled "Enabling Her Towards Financial Potential" was aimed to showcase how the TARA Akshar+ program has enabled women to make independent and informed financial decisions. Shabana Azmi emphasized on the importance to impart financial literacy on larger level, especially in rural areas women. Read More

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