Nirmala Sitharaman Set to Launch UPI-Based Digital Lending Facility

05 Mar 2025 CW Team

Digital Lending to Empower MSMEs As part of this initiative, MSMEs will be able to borrow funds based on their digital transaction history, improving access to seamless, collateral-free credit.

A dedicated portal will be launched for this facility, bringing onboard major public and private sector banks to facilitate digital lending for MSMEs.

This move builds on successful digital lending pilots conducted by State Bank of India (SBI) and Bank of Maharashtra, setting the stage for a nationwide rollout.

Part of Modi 3.0’s MSME Reforms The initiative aligns with the Union Budget 2025–26, which prioritised MSME growth and financial inclusion among its 10 key development measures.

In her Budget speech, Sitharaman highlighted:

Over one crore registered MSMEs employ 7.5 crore people, contributing 36% to India’s manufacturing sector. MSMEs drive 45% of India’s total exports, positioning the country as a global manufacturing hub. To further support MSME expansion, the government enhanced investment and turnover limits for their classification to 2.5 times and 2 times, respectively, facilitating greater scale, technological advancement, and credit access.

Key Budgetary Support for MSMEs Credit guarantee cover for MSMEs doubled to Rs 100 million, unlocking Rs 1.5 trillionin additional credit over five years. Customised credit cards with a Rs 50 million limit will be introduced for micro enterprises registered on the Udyam portal, with a target of 10 lakh cards issued in the first year. A Game Changer for MSME Financing The launch of the UPI-based lending facility marks a transformative step towards simplifying credit access, reducing dependency on traditional collateral-based lending, and boosting financial inclusion for India’s small businesses.

In a major push for India’s micro, small, and medium enterprises (MSMEs), Finance and Corporate Affairs Minister Nirmala Sitharaman is expected to launch a Unified Payments Interface (UPI)-powered digital lending facility on March 6, sources told Zee Business. Digital Lending to Empower MSMEs As part of this initiative, MSMEs will be able to borrow funds based on their digital transaction history, improving access to seamless, collateral-free credit. A dedicated portal will be launched for this facility, bringing onboard major public and private sector banks to facilitate digital lending for MSMEs. This move builds on successful digital lending pilots conducted by State Bank of India (SBI) and Bank of Maharashtra, setting the stage for a nationwide rollout. Part of Modi 3.0’s MSME Reforms The initiative aligns with the Union Budget 2025–26, which prioritised MSME growth and financial inclusion among its 10 key development measures. In her Budget speech, Sitharaman highlighted: Over one crore registered MSMEs employ 7.5 crore people, contributing 36% to India’s manufacturing sector. MSMEs drive 45% of India’s total exports, positioning the country as a global manufacturing hub. To further support MSME expansion, the government enhanced investment and turnover limits for their classification to 2.5 times and 2 times, respectively, facilitating greater scale, technological advancement, and credit access. Key Budgetary Support for MSMEs Credit guarantee cover for MSMEs doubled to Rs 100 million, unlocking Rs 1.5 trillionin additional credit over five years. Customised credit cards with a Rs 50 million limit will be introduced for micro enterprises registered on the Udyam portal, with a target of 10 lakh cards issued in the first year. A Game Changer for MSME Financing The launch of the UPI-based lending facility marks a transformative step towards simplifying credit access, reducing dependency on traditional collateral-based lending, and boosting financial inclusion for India’s small businesses.

Infrastructure Energy

14 Oct 2025

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Infrastructure Energy

14 Oct 2025

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Infrastructure Energy

14 Oct 2025

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..