Context:
Recently, the Ministry of Micro Small and Medium Enterprises (MSME), in association with the National Payment Corporation of India (NPCI) had launched the MSME RuPay Credit Card on a pilot basis, pan-India for Udyam registered MSMEs.
Relevance:
Facts for Prelims
MSME RuPay Credit Card:
- The MSME RuPay Credit Card is designed to provide a simplified payment mechanism to Micro, Small, and Medium Enterprises (MSMEs) for their business-related operational expenses.
- This card allows MSMEs to make digital payments, pay utility bills, taxes, and other statutory payments conveniently.
Interest-Free Credit Period:
- MSME borrowers using the RuPay Credit Card can benefit from an interest-free credit period for their business spending, subject to the policies set by the issuing bank.
- This feature allows MSMEs to manage their cash flow more effectively and meet their financial needs without incurring immediate interest charges.
NPCI – National Payments Corporation of India:
- The National Payments Corporation of India (NPCI) is an umbrella organization responsible for operating retail payments and settlement systems in India.
- It was established as a joint initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
- NPCI’s primary goal is to create a robust and efficient Payment & Settlement Infrastructure in India, facilitating secure and seamless electronic transactions for various payment services.
