Activities Round Up

Date : 16 Jul to 18 Jul 2014
Place : Mumbai-Chennai and Delhi
Organised by : FISME

World Bank- IFC with FISME hold consultations in Mumbai-Chennai and Delhi

 
The World Bank Group and Federation of Indian Micro and Small & Medium Enterprises (FISME) held a series of consultations with representatives of MSMEs and bankers to discuss innovative use of moveable assets in enhancing MSMEs’ access to finance. 

The consultations were held in Mumbai, Chennai and New Delhi at World Bank/ IFC facilities on 16th, 18th and 21st July respectively.
Bulk of financing to MSMEs in India is against immoveable asset based collaterals such as land and building .  The present practice impedes MSMEs access to finance greatly.

To address the problems of over reliance on asset based collaterals, the World Bank Group is currently working on a project with the Central Registry for Securitisation Asset Reconstruction and Security Interest of India (CERSAI).  The objective of the initiative is to consider registration of security interests on ‘moveable assets’ such as Accounts Receivables, Inventory, and other Intangibles on the CERSAI Registry System.

This solution has a lot of potential for increasing Access to Finance for under-served sections, such as women, micro and small enterprises etc.  

Besides briefing the participants about the progress of the project, the major issues discussed during the consultations were to capture the current experience in accessing finance from banks and financial institutions and discuss how moveable assets held by them were being used/ not being used currently.