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India Post Payments Bank (IPPB) today announced its partnership with the Small Industries Development Bank of India (SIDBI) to promote the extension of formal financial services and other support services to MSMEs, especially enterprises in rural and remote areas of the country.
Leveraging expertise to reach informal, micro-enterprises
The partnership aims to leverage IPPB’s rural reach and deep connect with village-level communities and SIDBI’s lending and credit risk assessment models in reaching to informal and micro enterprises in rural and remote areas as may be permitted under the extant regulations.
IPPB will also support SIDBI’s customers in digitising the payment mechanisms through its merchant onboarding system and collection solutions like UPI, QR-based solutions, etc.
Undertaking joint programmes
The two Institutions will also undertake joint programmes to upgrade the skills of Dak Sevaks in supporting credit and other services to micro-enterprises.
According to the company's statement, Both will work together to identify other areas of mutual interest and undertake various activities to support MSMEs and MSME ecosystems across the country with a special focus on informal micro-enterprises.
Organising hackathon for innovation in rural areas
The organization also plans to organise a hackathon involving the Fintech community for innovation in financial services in rural areas as well as a Swavalamban Challenge Fund to promote rural livelihood enterprises.
Secretary, DFS also emphasised the potential that the proposed partnership between SIDBI and IPPB holds in furthering financial inclusion in the country, especially by targeting informal and micro enterprises in rural and remote areas.
Sivasubramanian Ramann, said, “we look forward to a fruitful and meaningful partnership with IPPB which can make a positive impact on millions of informal rural enterprises in the country by improving their access to financial services and financial literacy.”
SIDBI raising Rs 10,000 crore
The development comes almost a week after the Small Industries Development Bank of India (SIDBI) raised Rs 10,000 crore via rights issue in the upcoming fiscal year.
SIDBI had said it aims to strengthen its equity capital, anticipating a surge in assets to Rs 5 lakh crore by March 2024, up from approximately Rs 4 lakh crore as of March 2023, as reported by PTI.
SIDBI is engaged in the promotion, development and financing of Micro, Small, and Medium Enterprises (MSMEs).
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