Activities Round Up

Date : 15 Jan to 15 Jan 2016
Place : New Delhi
Organised by : FISME

FISME signs MoU with World Bank Group

FISME, the leading federation of Indian MSME associations, has recently signed a MoU with the World Bank Group to create awareness among MSMEs about the functioning of credit information agencies.
Under the agreement, FISME will organise 5 training sessions cum workshops in 5 cities to train the MSMEs about the working of the credit rating bureaus, their advantages and how to retain a high credit score.
In India, at present there is only one major functional credit information bureau, CIBIL, which is accessed by all Banks for credit information of customers, particularly for appraising loan proposals.
The workshop will make the MSME entrepreneurs aware about scepticism from the financial institutions about the entrepreneurial abilities due to lack of enough information and data to corroborate.
The workshop will also deal with possibility of  inclusion of alternate data sources like inclusion of regularity in payment of mobile bills, electricity bills etc. in the SME credit reporting infrastructure.
At present the CIBIL data is solely based on reporting by the Banks / credit cards which may not provide the complete credit service profile of an MSME.
Due to lack of any historic credit data, information on many enterprises or entrepreneurs is not recorded in the current credit bureaus.
The current credit bureaus in the country are still developing, with only a limited data on the MSMEs currently available.
The need to manage data integrity and introduction of single unique identification and standard reporting format will also be discussed in the proposed workshops.