CURRENT AFFAIRS

1. 1.SIDBI BALANCESHEET
2.CGTMSE
3.MUDRA
4.STANDUP INDIA
5.MSME PORTAL DATA BANK
6.BILL DISCOUNTING
7.BALANCE SHEET ANALYSIS
8.RBI RECENT NEWS
9.GST
10.CURRENT AFFAIRS
11.BIODATA
12.HOBBIES
13.NTREES
14.DEMONETISATION
15.MONETARY POLICY
16.MONETARY POLICYCOMMITTEE
17.INCENTIVESFORCASLESS
What is Microcredit?
In common meaning Micro credit is “Loan of very small amount”. It can be defined as provision of
parsimony, credit and other financial services and products of very small amount to the poor in rural,
semi-urban and urban areas for enabling them to raise their income levels and improve living
standards. The institutions that provide Micro Credit are called Micro Credit Institutions . Micro Credit
is provided to those individuals that lack collateral, steady employment and a verifiable credit history
and therefore cannot meet even the most minimal qualifications to gain access to traditional credit
Microcredit in India:
Before the nationalization of banks in India in 1969, co-operative banks were the main dispensers of
small loans in the organized sector. Commercial banks were not easily accessible to small borrowers.
Those were the days of security-oriented approach. Nobody could think of a loan, big or small, without
a guarantor or mortgage of immovable property. Profit was the only motive of the banking.
Nationalization changed the picture and the nationalized banks opened branches in the remotest
corners of the country. They were to implement various government schemes like the Twenty Point
Program, Antodaya Program, subsidized Differentiated Rate of Interest loan etc. which aimed at
uplifting the poorest of the poor with the help of micro credit. Gradually there was establishment of
Regional Rural Banks (RRBs), Deposit Insurance and Credit Guarantee Corporation (DICGC),

2. National Bank for Rural and Agricultural Development (NABARD), Small Industrial Development Bank
of India (SIDBI), Export Credit Guarantee Corporation (ECGC) and the latest Credit Guarantee Fund
Trust for Micro & Small Enterprises (CGTMSE).
Self-Help Group (SHG):
A Self-Help Group (SHG) is a registered or unregistered group of micro entrepreneurs belonging to
homogenous social and economic background voluntarily, who come together to save small amounts
regularly, to mutually agree to contribute to a common fund and to meet their emergency needs on
mutual help basis. The group members use collective wisdom and peer pressure to ensure proper
end-use of credit and timely repayment thereof.
Every month, the women within the Self-Help Group collect money from each other in order to build
capital for internal lending. They deposit this money in the local bank. If a women needs money for a
business project, she takes out a loan from these savings, and pays a (small) rate of interest on this
loan.
How SHG’s work
The Self-Help Groups operate by a theory of social collateral in which all members of the group are
responsible for ensuring that the monthly savings are contributed and that any subsequent loans are
repaid. Because of social pressure from the other women within the group, loans are quickly returned
with low rates of default. Timely deposits of savings as well as the reliable return of loan amounts has
established strong credibility within the Self-Help Groups, as well as with the local bank.
CGTMSE
Availability of bank credit without the hassles of collaterals / third party guarantees would be a major
source of support to the first generation entrepreneurs to realise their dream of setting up a unit of
their own Micro and Small Enterprise (MSE). Keeping this objective in view, Ministry of Micro, Small &
Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as
to strengthen credit delivery system and facilitate flow of credit to the MSE sector. To operationalise
the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE).
The main objective is that the lender should give importance to project viability and secure the credit
facility purely on the primary security of the assets financed. The other objective is that the lender
availing guarantee facility should endeavor to give composite credit to the borrowers so that the
borrowers obtain both term loan and working capital facilities from a single agency. The Credit
Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed
collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would
make good the loss incurred by the lender up to 75 / 80/ 85 per cent of the credit facility.
Three light blue stripes connecting the word CGTMSE indicate sources of 'comfort', 'hope' and
'inspiration' the Trust provides and the Flame indicates the continuous support being provided by the
Trust to the entrepreneurs in realising their dream of setting up units of their own.
1. Which are considered as eligible lending institutions under the Scheme?
All Scheduled Commercial Banks (either PSU, Private or Foreign Banks), select Regional Rural
Banks, or such of those institutions as may be directed by GOI can avail of guarantee cover in respect
of their eligible credit facilities under the Scheme. Small Industries Development Bank of India
(SIDBI), National Small Industries Corporation Ltd (NSIC) and North Eastern Development Finance
Corporation Ltd (NEDFI) have been included as eligible institutions
2. Can a Private sector bank or a foreign bank be eligible for guarantee cover?
Yes, provided it is a commercial bank listed in the II Schedule to the Reserve Bank of India Act, 1934.

3. 3. Is Regional Rural Bank eligible for guarantee cover?
Yes. But only those Regional Rural Banks, which have been classified by NABARD under
the 'Sustainable Viable' category and currently viable category with positive networth.The Trust shall
cover credit facilities (Fund based and/or Non fund based) extended by select RRB(s) to a single
eligible borrower in the Micro and Small Enterprises sector for credit facility not exceeding Rs. 50 lakh
by way of term loan and/or working capital facilities on or after entering into an agreement with the
Trust, without any collateral security andor third party guarantees.
4. Whether SFCs, Twin Function IDCs, Scheduled Co-operative Banks, Urban Co-
operative Banks and NBFCs are eligible lending institutions for availing guarantee cover under
the CGTMSE?
Select SFCs are being considered for inclusion as MLI, other institutions are not eligible to become a
MLI.
5. When can the eligible lending institutions apply for guarantee cover in respect of eligible
credit facilities under the Scheme?
The eligible lending institutions are required to enter into an 'one time' agreement with CGTMSE for
becoming Member Lending Institutions (MLIs) of the Trust. MLIs can then apply for guarantee cover
in respect of eligible credit facility sanctioned to any eligible borrower. The MLIs can apply for
guarantee cover in respect of credit proposals sanctioned in the quarter April-June, July-September,
October-December and January-March prior to expiry of the following quarter viz. July-September,
October-December, January-March and April-June respectively.
6. Whether the Trust will re-appraise the proposals sanctioned by the MLIs for approving
guarantee cover?
MLIs are expected to support only viable proposals using their commercial discretion and due
diligence. CGTMSE will have full trust in their credit evaluation. The Trust will not re-evaluate the
proposals sanctioned by MLIs. If the proposals satisfy the basic norms laid down under the CGS, the
Trust will extend guarantee cover.
7. What is the facility provided to an MLI desiring to know about the details of accounts
covered under guarantee cover by CGTMSE?
Our website www.cgtmse.in or www.cgtsi.org.in has 'Reports & MIS' module to enable the MLIs to
generate standard reports . MLI can log on to the website-member page, using member-ID allotted
and generate the reports desired by it viz. status of the application lodged, Demand for GF/ASF,
monthly reports etc
B. Eligible Borrowers
Which type of borrowers can be covered under the Scheme?
New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding
Retail Trade, Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc.
2. Whether borrowers from all service sector enterprises are eligible under the Scheme?
As of now, all activities that come under service sector as per RBI's guidelines on 'Lending to Priority
Sector' and MSMED Act, 2006 except retail trade are eligible for coverage under the scheme.
3. Whether loans given to Small Road Transport Operators are eligible for coverage
under the Scheme?

4. Yes. Small road and water transport loans are eligible for guarantee cover.
4. Is it compulsory for the borrower to obtain Income Tax Permanent Account Number [IT-
PAN] to be an eligible borrower?
Under the Guarantee Scheme, a borrower is required to obtain IT PAN number prior to availing of
credit facility from the eligible lending institution. Also it is a mandatory requirement under section
139A(5) read with section 272(C) of the I.T Act 1961 to indicate IT PAN on all tax documents which
include returns, challans, appeals, etc. However, in respect of loans up to Rs. 10 lakh, CGTMSE is
presently not insisting that the IT PAN be obtained at the time of availing of the guarantee cover. IT
Pan No. is to be indicated in respect of credit facility above Rs.10 lakh. Nevertheless, the MLIs have
been advised to inform their borrowers to apply for IT PAN number. It is desirable to indicate IT Pan
No. in all the application irrespective of the amount.
5. Is guarantee benefit available to existing units of a lending institution which has
become a MLI of CGTMSE?
In case of existing units, additional credit facilities in the form of term loan or renewal of working
capital facilities can be covered as and when the facilities are extended, provided no collateral
security and/ or third party guarantee is obtained. Part of the credit facility with collateral and part of
the facility without collateral for guarantee cover would not be entertained if it is considered as a
composite credit.
6. Is it necessary that a borrower to be eligible should obtain all the required credit facilities
from a single institution?
Credit facilities can be extended by more than one bank and/or financial institution jointly and/or
separately to eligible borrower upto a maximum upto Rs.100 lakh per borrower subject to ceiling
amount of individual MLI or such amount as may be specified by the Trust.
7.Co-financing to a MSE unit by Financial Institution with a Commercial Ba nk can be covered
under the Scheme?
Yes, joint financing by a financial institution (e.g. SIDBI,NSIC, NEDFi) and Commercial bank can be
covered under the scheme. For e.g. MSE unit is financed by term loan from State financial institution
and Working capital from a commercial bank.
8. Whether credit facility extended to self-help group can be covered under the scheme?
No. At present, as per the Scheme, the credit facility extended to Self Help Group cannot be covered.
D. Primary Security vis-a-vis Collateral security/personal vis-à-vis third party
guarantee
1. What is the difference between primary security and collateral security?
Primary security is the asset created out of the credit facility extended to the borrower and / or which
are directly associated with the business / project of the borrower for which the credit facility has been
extended. Collateral security is any other security offered for the said credit facility. For example,
hypothecation of jewellery, mortgage of house, etc.
2. Under the Scheme, any third party guarantee obtained for the credit facilities will
make them ineligible for guarantee cover. What is third party guarantee?
As per the extent guidelines no third party guarantee should be obtained if the account is to be
covered under the Credit Guarantee Scheme. However, in case the constitution of the borrower is

5. proprietary or partnership, the personal guarantee of proprietor/ partner is not treated as third party
guarantee. Personal guarantee of directors, were borrower constitution is a company would be
treated as third party guarantee.
F. Credit guarantee - extent of cover, invocation, claim etc.
1. What is the guarantee cap available to the lender per eligible borrower?
Category Maximum extent of Guarantee where credit facility
is
Upto Rs.5
lakh
Above Rs.5 lakh
upto Rs.50 lakh
Above Rs.50 lakh
upto Rs.100 lakh
Micro Enterprises 85% of the
amount in
default subject
to a maximum
of Rs.4.25
lakh
75% of the
amount in default
subject to a
maximum of
Rs.37.50 lakh
Rs.37.50 lakh plus
50% of amount in
default above
Rs.50 lakh subject
to overall ceiling of
Rs.62.50 lakh
Women
entrepreneurs/ Units
located in North East
Region (incl. Sikkim)
(other than credit
facility upto Rs.5
lakh to micro
enterprises)
80% of the amount in default
subject to a maximum of Rs.40
lakh
Rs.40 lakh plus
50% of amount in
default above
Rs.50 lakh subject
to overall ceiling of
Rs.65 lakh
All other category of
borrowers
75% of the amount in default
subject to a maximum of Rs.37.50
lakh
Rs.37.50 lakh plus
50% of amount in
default above
Rs.50 lakh subject
to overall ceiling of
Rs.62.50 lakh
2. When should the lender apply for the guarantee cover?
The eligible lending institution can apply for guarantee cover in respect of credit proposals sanctioned
in the quarter April-June, July-September, October-December and January-March prior to expiry of
the following quarter viz. July-September, October-December, January-March and April-June
respectively.
3. When will the guarantee cover commence for the eligible credit facility?
The guarantee cover will commence from the date on which guarantee fee proceeds are credited to
bank account of the Trust.
4. How long the guarantee cover is available for credit facilities extended to a
particular borrower?
Guarantee will commence from the date of payment of guarantee fee and shall run through the
agreed tenure of the term loan / composite loans. Where working capital facilities alone are extended

6. to eligible borrowers, it would be for a period of 5 years or block of 5 years on renewal of the
guarantee cover, provided MLI pays the Annual Service Fee as on March 31, latest by May 31 every
year.
When can the lender invoke the guarantee given by the Trust in respect of credit
facility advanced by it to the eligible borrower?
The lender shall prefer a claim on the defaulted account on recall of loan and initiation of recovery
proceedings under due process of Law. The lender can, however, invoke the guarantee given by the
Trust only after the lock-in period of 18 months either from the date of last disbursement of credit to
the borrower or from the date of the guarantee cover coming into force in respect of the particular
credit facility, whichever is later.
How the claim of lender will be settled by the Trust in respect of defaulting account?
After satisfying itself about the procedural aspects met by the lender, regarding lodgment / preferment
of claim for guarantee, the Trust will honour 75% of the guaranteed portion of the amount in default,
subject to maximum of 75% / 80% of the amount in default. The balance 25% shall be paid on
conclusion of the recovery proceedings
Who will bear the legal expenses of recovery, MLIs or borrower or CGTMSE?
Initially the legal expenses will be borne by the MLI. At the time of remittance of recovery proceeds to
CGTMSE by the MLI, same may be deducted
MSME Data Bank
Que. How can I get the best viewof the webpage?
Ans : Please use IE10+, Chrome (latestversion),MozillaFirefox (latestversion).Thiswebsite is
mobile Device Compatible also.
Que. Where doI needto register on MSME DataBank?
Ans : MSME DataBankhas facilityforregistrationof three type of organizations,namely:
1. MSME – thisregistrationisforIndividual MSME Units.
2. Association –thislinkisfor registrationbyIndustryAssociations.
3. MSME DevelopmentOrganizations –thislinkisforregistrationbyvariousorganizations
underMinistryof MSME, like DC-MSME,NSIC,KVIC,CoirBoard, MGIRI, NIMSME, etc.
Please registeronlyunderthe appropriate categoryapplicable toyou,else yourregistrationwill be
treatedas invalid.
Que. I do not have Aadhaar Number/ UdyogAadhaar Number/ PAN,can I registeron MSME
DataBank withoutthese?

7. Ans : Aadhaar Number,UdyogAadhaarNumber& PAN are mandatorilyrequiredforregistrationon
MSME DataBank. You cannotregisteronMSME DataBank withoutthese.Please see the detailed
guidelinesprovidedonMSME DataBank homepage formore details.
Que. While tryingto registeras MSME, I am gettingthe error message "ThisUdyog Aadhaar
Numberis already presentin our Database"?
Ans : You have beenalreadyregisteredinMSME DataBank.You will receive ane-mailwithyourlogin
credentialsusingwhichyoucanview& update yourinformation.
Que. While tryingto registeras MSME, I am gettingthe error message "ThisPAN Numberis
already presentin our Database"?
Ans : While registeringonMSME DataBank we are not allowingduplicate registrationwithPAN
(exceptinthe case of ProprietorUnit).Incase youhave more than one units,youcan add their
detailslaterfromyourdashboard.Logincredentialstothe dashboardwill be sentonyourregistered
e-mail IDshortly.
Que. Afterclickingof Validate button, the informationregarding my unit isfilledinthe boxes
belowbut I am not able to editthem?
Ans : The fieldswhichwe are fetchingfromUdyogAadhaarData are not editable since itwill leadto
mismatchbetweendataof UdyogAadhaar& MSME DataBank. Youcan proceedwithenteringthe
otherinformationaboutyourenterpriseinthe fieldsprovided.
Que. There are some fieldsonwhich I am not able to type?
Ans : Please make sure thatyouare enteringthe numericandalphabetinthe appropriate fields.If
the problempersistsplease update yourInternetBrowser.
Que. I have receivede-mail containingusername/registrationnumberfor the portal but have not
receivedpassword.
Ans : You will receive aseparate e-mail containingyourlogincredentials.Pleasewaitforthe same.
Que.9 I have neitherreceivedmyuser name nor password for the portal.
Ans : You will receive ane-mailwithyourlogincredentialsusingwhichyoucanview & update your
information.

8. Que. How can I update my informationin MSME DataBank?
Ans : You will receive ane-mailwithyourlogincredentialsusingwhichyoucanview & update your
information.
Que. Afterloginto the portal there is some informationwhich I am not able to edit.
Ans : Since MSME DataBank isbeingbuiltinsyncwithUdyog Aadhaar,the basicinformationwhich
we are fetchingfromUdyogAadhaardata is noteditable since itwill leadtomismatchof data
betweenUdyogAadhaar& MSME DataBank.
Que. Afterfillinginall the detailswhenI click on Submit button,there is no message displayed
and the browser returnsto the top ofpage.
Ans : Please mail the detailsyouare tryingtoenteronthe portal to support@msmedatabank.in.
Que. Where can I contact incase of any technical issue?
Ans : You can call MSME DataBank Helplineon+91-9599230207 or e-mail yourissue
to support@msmedatabank.in.
Que. Will Ibe issuedany certificate for registrationon MSME Databank?
Ans : No,MSME DataBank isbuilttocreate comprehensivedatabase of MSMEs across the country
whichwill facilitate inpolicyformulationandPublicProcurementPolicyof Governmentof India.
Que. I am a manufacturing unitbut while registeringonMSME DataBank my category is shownas
Services.
Ans : We are fetchingthisdatafromyour UdyogAadhaar,In case youhave specifiedyourself as
Service organizationwhileregisteringonUdyogAadhaarthe same will reflecthere.
Que. I am a service unitbut while registeringonMSME DataBank my category is shownas
Manufacturing.
Ans : We are fetchingthisdatafromyour UdyogAadhaar,In case youhave specifiedyourself as
Manufacturingorganizationwhile registeringonUdyogAadhaarthe same will reflecthere.

9. Que. My unitis Proprietorshipunit but while registeringonMSME DataBank my category is shown
as Partnership.
Ans : We are fetchingthisdatafromyour UdyogAadhaar,In case youhave specifiedyourself as
Partnershiporganizationwhile registeringonUdyogAadhaarthe same will reflecthere.
MSME Databank Portal: It aims to gather information about micro, small and medium enterprise
(MSMEs). Its Objective is to have one-stop source of information of MSMEs of India, including their
credit and technology, requirement in terms of raw material and marketing, etc. It will enable the
MSME units and the various Associations to furnish data online. It will save the efforts and money
required for physical Census. Databank’s MIS dashboard will provide real time information on various
types of the MSMEs registered on the portal. The databank will be used for public procurement
purposes and the PSUs will make use of the data for procuring from MSMEs.
Mahatma Gandhi Institute for Rural Industrialization (MGIRI), earlier named as National
Institute for Rural Industrilization (NIRI),[1]
is an autonomous institution located
in Wardha, Maharashtra, India intenning to accelerate the process of rural industrialization by
providing science and technology support. It is inspired by the Gandhian vision of sustainable
and self reliant village economy
ni-msme, since its inception in 1960 by the Government of India, has taken gigantic strides to become
the premier institution for the promotion,developmentand modernization ofthe SME sector. An autonomous arm
of the Ministry of Micro, Small and Medium Enterpris es (MSMEs), the Institute strives to achieve its avowed
objectives through a gamut of operations ranging from training, consultancy, research and education, to
extension and information services.
A Centre of Excellence
It was in 1984 that the UNIDO had recognized SIET as an institute of meritorious performance under its Centers
of Excellence Scheme to extend aid. Subsequently, it was also accorded national status and SIET Institute
became nisiet in the same year. To cope with the precut of globalization, the Government of India has enacted
Micro, Small,Medium Enterprises Development (MSMED) Bill in the Parliament which was commenced on 2nd
October 2006.Accordingly, the institute also has emerged as an apex organisation by changing its structure as
well as name as ni-msme from 11th April 2007.
SFURTI
Khadi and Village Industries Commission (KVIC) and the Coir Board are implementing a scheme
called the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). The scheme has
been introduced all over India to generate employment in rural areas.Under this scheme 29 khadi, 47
village industries and 21 coir clusters have been made functional by providing them with improved
equipment, common facilities centres, business development services, training, capacity building and
design and marketing support, etc.