Digital Banking: Paving the Way for Financial Inclusion for Small Businesses
Despite the rapid strides India has taken to further its financial inclusion agenda, the lack of financial deepening remains a challenge, especially on the small business financing agenda. A substantial fraction of 63.88 million MSMEs remain outside the ambit of formal finance and there is continued reliance on informal money markets like money lenders or chit funds to finance itself, even at the cost of staying uncompetitive owing to the usurious interest burden.