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Parliament’s Standing Committee on Finance Bats

Published on April 16, 2022
Current Context: Amid the credit crunch being faced by the MSMEs, the Standing Committee on Finance led by Shri Jayant Sinha has recommended providing credit cards to the entrepreneurs of the MSME sector.
Parliament’s Standing Committee on Finance Bats
  • MSME contributes to 38% of GDP and 30% of the total manufacturing as per economic survey 2021. The COVID took a heavy toll upon the MSME sector, leading to the temporary closure of 16 lakh MSMEs.
  • The Standing Committee on Finance has recommended allowing credit cards to entrepreneurs on the lines of Kisan Credit Card (KCC). It will help small businesses with working capital to take up manufacturing.
  • The recommendation suggests - As an entrepreneur signs up on the UDYAM Portal, He/She is automatically allotted a credit card, called Vyapar credit card.
  • The report also finds that out of 6.34 crore MSMEs, less than 40% borrowed from formal financing. This throws light on the poor plight of financing.

Question:

Q.1 Which committee has recommended facilitating Vyapar Credit Cards to MSME entrepreneurs?
a. Kelkar Committee
b. Santhanam Committee
c. L. K Jha Committee
d. Standing Committee on Finance
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