To overcome difficulties in meeting business-related expenses of MSMEs, Union Bank of India and National Payments Corporation of India (NPCI) have jointly launched a credit card for borrowers, offering interest-free credit up to at 50 days.
“Union MSME RuPay Credit Card” is a new digital payment tool available for MSME customers of Union Bank of India to meet their business-related operational expenses with interest-free credit for up to 50 days , according to a joint statement released on Friday.
The credit card will provide a simplified payment mechanism for MSMEs (micro, small and medium-sized enterprises) to meet their business-related operational expenses, he said.
Among other things, the card also offers the EMI facility to customers for their business related purchases. MSMEs will also benefit from specially selected efficient business services on this card, which will help them to grow their business on most digital platforms.
Moreover, they will also enjoy accident insurance cover up to Rs 10 lakh, access to domestic airport lounge twice every quarter and other rewards using this card.
“This credit card will reduce the demand for cash withdrawal by MSMEs for business expenses in addition to simplifying their payment mechanism.
“With the new credit card facility coupled with regular working capital limits, MSMEs can enjoy best-in-class products made available to them by the bank,” said Nidhu Saxena, Executive Director of Union Bank. of India.
It will improve the digital distribution channel by serving MSME customers in a technology-intensive economy, Saxena said.
Praveena Rai, COO of NPCI, said, “We believe this initiative will digitally empower MSMEs and help them streamline their regular business expenses and finances. MSMEs are considered the backbone of the economy and we are confident that this card will support MSMEs with convenient digital credit card payments.”
RuPay MSME cards will also support businesses on their contemporary digitization journey, she said.
Rai said there has been an expansion of RuPay’s wallet from retail users to business users.
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