Ministry of MSME approved Changes in the Interest Subvention Scheme

December 16, 2019
Current context: Nitin Gadkari, Minister of Micro, Small and Medium Enterprises (MSME) has approved the changes in the Interest Subvention Scheme guidelines for MSMEs on 16th Dec 19.
Ministry of MSME approved Changes in the Interest Subvention Scheme  
  • The changes have been made to boost MSMEs productivity through access to credit at reduced cost.
  • The modifications to the scheme include:
    1. Settlement of claims based on internal or concurrent auditor certificate and submission of statutory auditor's certificate once by June, 2020.
    2. Acceptance of claims in multiple lots for a given half year by eligible institutions.
    3. Requirement of Udyog Aadhar Number, UAN is dispensed with for units eligible for GST.
    4. Trading activities without UAN have been made eligible.
    5. The last date of submission of claims for the half-yearly period ended 31st March 2019, has now been extended till 31st December 2019.
  • Prime Minister Narendra Modi launched the Interest Subvention Scheme for MSMEs in November 2018.
  • As part of access to credit, Prime Minister announced 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans.
  • Small Industries Development Bank of India (SIDBI) is the nodal agency for the implementation of the scheme.
  • The “Interest Subvention Scheme for Incremental credit to MSMEs 2018” will be implemented over 2018-19 and 2019-20.
  • The Scheme will be in operation for a period of two financial years FY 2019 and FY 2020.

Question: 

Q.1 The Interest Subvention Scheme for MSMEs is/was launched in___________? 
a. 2016
b. 2017
c. 2018
d. 2019

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