Budget: DigiLocker for MSMEs to digitize and ease business credit

Sitharaman also proposed infusion of ₹9,000 crore towards the government’s credit guarantee scheme for MSMEs, which will come into effect from April 1.

The move comes as part of the government’s efforts to digitize the application and availability of loans and credit to MSMEs. Alongside the latter, large businesses and charitable trusts will also be able to access the DigiLocker platform, to enable businesses to share documents online. The Centre-issued Permanent Account Numbers (PANs) will be used as a common identifier for all digital systems of specified government agencies, including the new availability of DigiLocker for businesses.

DigiLocker, the government’s official online digital document storage facility, was launched in July 2015 by Prime Minister Narendra Modi. As of now, the platform has largely been available for individuals only. Under the new initiative, digitized documents will be made available to businesses as well — as part of a planned overhaul and digitization of all financial operations in the country.

The revamps include delegating regulatory powers to the International Financial Services Centres Authority (IFSCA), to make it a single-window approval system for the Reserve Bank, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India, Special Economic Zones, and Goods and Service Taxes (GST), Sitharaman said.