5 Finance News in MSME, Insurance, Agri & Service Sectors

1 . Finance News In The MSME Sector: Boosting Business Brilliance – QCI And ONDC’s Digi Ready Certificate Portal Ignites MSME Empowerment

MSME(Micro, small and medium enterprise) sectors in India are pivotal in promoting employment opportunities and reducing regional imbalance. In the pursuit of advancing digital empowerment within the MSME sector, the Quality Council of India (QCI) has joined hands with the Open Network for Digital Commerce through the launch of the Digi Ready Certification Portal (DRC portal) on February 8, 2024.

MISSION – Using the recently launched forum “FIRST”, to support digital transactions and raise awareness in villages, the initiative is in keeping with the Honourable Prime Minister of India’s mission.

What is The Product? An Online Self-assessment tool called “DigiReady” was developed by the QCI which helps to evaluate how each entity can incorporate with the ONDC network by using software and other technologies.

How Does The Product Work? The tool contains seven (7) modules that need to be gone through by correctly answering all vitals relating to business or service. Any incorrect attempt at a question will land on hand holding tool so that the entities can upskill themselves on the relevant module for correctly attempting the questions.

On the contrary, participants will be awarded an E – Certificate on successfully addressing all modules recognising their entity as “DigiReady onboard network seller partners” listed with ONDC thereby creating an inclusive Ecosystem of E-commerce.

The certification process evaluates

• Various aspects of digital readiness.
• Presence of necessary documentation for online operation.
• Proficiency in using software and technology.
• Integration with digitized workflows.
• Efficient management of orders and catalogue offerings.

2 . Finance News In The Insurance Sector: IRDAI Pioneers AYUSH In Health Insurance -Your Wellness, Your Policy

An initiative by IRDAI to bring alternative medicines (AYUSH) at par with other popular and old branches of medicine through the inclusion of AYUSH treatments in health insurance policies by issuing guidelines to all general and health insurance companies with effect from 1st April 2024. For this purpose, the Ministry of Ayush(MOA) formed an essential group of experts for the Insurance sector in 2023.

• Board Approved Policy – Insurers shall have a Board’s approved policy by containing quality parameters and procedures for enrolling AYUSH hospitals or daycare centres as network providers to provide cashless facilities.
• Insurers shall make amendments to their existing products that contain limitations for AYUSH treatments and ensure compliance with the above directions.
• Insurers shall have standard operating procedures (SOP) as well as controls for standard treatment protocols.

SOURCE: https://www.irdai.gov.in

3 . Finance News In The Agriculture Sector: Empowering Agri-Trades – Punjab & Sind Bank Joins Forces With WDRA For Low-Interest Loans

To facilitate farmers and traders in providing low-interest rate loans, the Warehousing Development Regulating Authority(WDRA) signed a memorandum of Understanding (MOU) with Punjab & Sind Bank on 5th February 2014. 

Objectives Of MOU

The MOU was signed to raise awareness about the funding against electronic negotiable warehouse receipts(e-NWRs). The NWR system enables farmers to store the produce safely and scientifically at warehouses.

It allows farmers to receive loans from banks using the issued E-NWRs against their deposited stock to promote awareness of funding against e-NWRs. Punjab & Sind Bank is offering loans against e-NWRs with no collateral and an attractive rate of interest. Under the agriculture sector, a loan of up to 75 lakhs and for other category borrowers up to Rs. 5 crores loans are extended.

4 . Finance News In The Service Sector: Your Ticket To Convenience -RBI Permits Banks And Non-Banks To Offer PPIs In Public Transport

The Reserve Bank of India has amended the Master Direction on February 23, 2024, regarding Prepaid Payment Instruments Mass Transit Systems (PPI -MTS), where it has allowed authorised banks and non-bank Fintech companies to issue PPI for making payments across various public transport systems.

Widespread fintech apps like PhonePe, Mobikwik, and Amazon Pay hold PPI licenses, but which one of them will be authorised to issue transport wallets has yet to be declared. As per the amended direction, fintech companies come to terms with metro authorities to allot prepaid wallets that can be used like metro cards.

Features And Benefits

• One instrument can be used in multiple transit systems including toll and parking payments.
• The instruments provide automated fare collection and are reloadable.
• The instrument has a bounding limit of ₹3,000/- and has perpetual validity.
• Commuters can switch between different modes of transportation using the Instrument.
•  It promotes digital payment solutions.

5 . Finance News In The Service Sector: UBER And ONDC- Elevating App Mobility  

• Ride-hailing firm Uber has signed a Memorandum of Understanding(MOU) with government-backed ONDC to serve the mobility needs (intercity bus, rail ticket bookings) of all Indians.
• Bus ticketing platform RedBus became the first independent mobility company to join ONDC.

6 . FREQUENTLY ASKED QUESTIONS – FAQ

Q1. What does IRDAI stand for?

Ans. Insurance Regulatory and Development Authority Of India – a statutory body under the Ministry of Finance – Government of India deals with directing and licensing the insurance and reinsurance industries. Its current headquarters are in Hyderabad, Telangana, in South India and its present chairman is Mr. Debasish Panda.

Q2. What does AYUSH stand for?

Ans. A name derived from the alternative healthcare system covered by the Ministry of

Ayurveda, Yoga & Naturopathy, Unani (practised in Muslim culture), Siddha (traditional medicine originating in South India) & Sowa-Rigpa(Traditional Tibetian medicine), Homeopathy.

The Department of Indian Systems of Medicines and Homeopathy (ISM&H) was established in 1995 under the Ministry of Health and Family Affairs. Later ISM&H was renamed as Department of AYUSH by Narendra Modi government on November 9, 2014.

Q3. What is WDRA?

Ans. The Warehousing Development and Regulating Authority was established under The Warehousing (Development and Regulation) Act 2007. The mission of WDRA is to build a negotiable warehouse receipt system in the country. The effort is designed to facilitate the scientific warehousing of the goods, boost liquidity in the rural areas, optimise supply chains, and elevate the grading and quality of goods, ultimately securing higher returns for the depositors.

Q4. What is NWR?

Ans. An NWR is an E e-warehouse receipt that allows the goods to be delivered to the Depositor or transferable to the endorsee by taking the title of goods through the endorsement.

Q5. What is a Public transport system?

Ans. Movement of persons, animals, birds, and goods from one place to another through air, land, water etc. in designated routes in exchange for some consideration. Popular modes of public transport are city buses, trolleybuses, trams, passenger trains, rapid transit (metro/subway/underground) and ferries.

Q6. What does QCI stand for?

Ans. The Quality Council of India is a registered society under the Societies Registration Act 1996. Its primary objective is to offer accreditation services across diverse sectors, ensuring that products, services, and individuals meet the standards required for assessment by foreign markets, following the latest regulations under the World Trade Organization (WTO) regime. The QCI is formed under the Department of Promotion of Industry and Internal Trade (DPIIT), Government Of India.

Q7. What does ONDC stand for?

Ans. Open Network For Digital Commerce is a set of specifications designed to foster open interchange and connections between shoppers, technology platforms and retailers resulting in an open E-Commerce platform for MSME sellers. Founded on 31st December 2021, as a non-profit company under the Department of Promotion of Industry and Internal Trade (DPIIT), Government Of India, with an initial investment from QCI and Protean E-government Technologies Limited.