Another liquidity enhancement measure was through support by way of a subordinated debt which was guaranteed by the government for the troubled MSMEs, he said.
Moreover, the fund will be operated through a Mother Fund and a few daughter funds to enable MSMEs
expand in size and capacity and would also encourage them to list on the main board of stock exchanges, she had said.
The FOF scheme is intended to help those businesses who are in their nascent and initial stages, where there are almost no prospects to raise funds through the help of professional corporations or venture capitalists. The scheme proposes to buy up to 15 per cent growth capital in high credit MSMEs.
Speaking about other initiatives of the bank, the SBI
chairman said the bank recently launched a gold loan scheme for MSMEs and sanctioned Rs 88 crore under this product within one month.
"In a way it is monetization on the ideal gold at least for businesses...safety of your jewellery we are ensuring you don't have to even pay locker and this product has received very good traction and we are planning to further build up this product," he added.
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