Gold Monetization Scheme (GMS) 2015. An initiative to Make the dormant gold productive.

On 5th November, 2015, Prime minister Mr Narendra modi launched the Gold Monetization scheme. The scheme is intended at productive utilization of 20000 tonnes of gold lying idle with the households of india. PM launched three schemes to lure tonnes of gold from households into the banking system and said that India is poor because gold is lying idle. The Gold Monetisation Scheme (GMS), 2015 will offer option to resident Indians to deposit their precious metal and earn an interest of up to 2.5 per cent; while under the Sovereign Gold Bonds Scheme, investors can earn an interest rate of 2.75 per cent per annum by buying paper bonds. ( Source: PTI, 5th November,2015).

Banks not Lending to MSME sector Despite of govt guarantees and directives.

Stating that credit flow towards the MSME sector is inadequate, Union Minister Kalraj Mishra today said banks are reluctant while sanctioning loans to entrepreneurs belonging to the sector. "The flow of credit to the micro, small and medium enterprises (MSME) sector is not adequate. They (MSMEs) are facing huge difficulties while availing loans from banks."Despite the provision of collateral free, banks don't sanction loans, causing distress to small entrepreneurs, ignoring RBI guidelines," Mishra said at an Assocham event here. Mishra told PTI that he has written to the Finance Ministry in this regard and is awaiting a response from them. "MSMEs Ministry is willing to take responsibility and we have urged various other state governments for Credit Guarantee Fund Trust and are collecting the funds to ensure that banks do not hackle entrepreneurs and instead take up the issue directly with the Ministry," Mishra said. The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the micro and small enterprises (MSE) sector without the need for collaterals/ third party guarantees.

According to a RBI circular, banks are mandated not to accept collateral security in the case of loans up to Rs 10 lakh extended to units in the MSE sector.As per another circular, banks may, on the basis of good track record and financial position of MSME units, increase the limit of dispensation of collateral requirement for loans up to Rs 25 lakh with the approval of the appropriate authority. The Minister further said that the MSME Ministry is working on a format to streamline the process of filing entrepreneurs' memorandum (EM) through an online system. Earlier, while speaking at a CII event, Mishra said the expected manufacturing renaissance was beset with challenges of infrastructure like power, ports, railroads coupled with a shortage of trained human capital and publicsectorcontrol.

The government's New Manufacturing Policy, he reiterated, has the vision to enhance the share of manufacturing in GDP to 25 per cent within a decade and creating 100 million jobs on a sustainable basis. "Key policy instruments for achieving the above objective include establishment of National Investment and Manufacturing Zones, self governing and autonomous bodies for industrial townships and proposals to improve access to finance for SMEs in the manufacturing sector," he added. (Source: PTI 19th November, 2014).

Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana launched 8th April, 2015, Prime Minister, Shri Narendra Modi, inaugurated the scheme . He mentioned that supporting the small entrepreneurs of India is the biggest way to help the Indian economy grow and prosper. He was speaking at the launch of the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana in New Delhi. Stressing the contribution of small entrepreneurs in the economy, the Prime Minister expressed confidence that within a year's time, the major banks would also adopt the MUDRA model. The scheme aims at providing Rs 2 lacs, 5 lacs and upto 10 lacs collateral free loans to small and micro entrepreneurs.

The Prime Minister said that while there are a number of facilities provided for the large industries in India, there is a need to focus on these 5 crore 75 lakh self-employed people who use funds of Rs 11 lakh crore, with an average per unit debt of merely Rs 17,000 to employ 12 crore Indians. He said that these facts, when brought to light, led to the vision for MUDRA Bank. The Prime Minister said that MUDRA scheme is aimed at "funding the unfunded". He said that the small entrepreneurs of India are used to exploitation at the hands of money lenders so far, but MUDRA will instill a new confidence in them that the country is ready to support them in their efforts that are contributing so heavily to the task of nation building. (source: PMINDIA.gov.in)