Credit Cards for Micro Enterprises ;Customised Credit Cards with a ₹ 5 lakh limit for micro enterprises registered on Udyam portal. In the first year, 10 lakh such cards will be issued.

This initiative is a significant step towards addressing the financial challenges faced by micro enterprises. By providing easy access to credit with a ₹5 lakh limit, these customized credit cards will offer much-needed liquidity for small businesses.

Some key benefits of this move:

• Instant Access to Credit

: Entrepreneurs can get immediate funds for urgent business needs.

• Revolving Credit Facility

: Businesses can reuse the credit as they repay, ensuring financial flexibility.

• Reduced Dependency on Informal Lending

: Many micro-enterprises rely on high-interest loans; this initiative provides a more structured alternative.

• Encourages Digital Transactions

: Promotes financial inclusion and digital payments among small businesses.
However, proper financial discipline is crucial. Micro-entrepreneurs should ensure timely repayments to avoid high interest rates and penalties. This move, if implemented efficiently, can be a game changer for the MSME sector.