Metra Trust’s ‘BOOSTER’ Current Account: A game changer for MSMEs

Micro, Small and Medium Enterprises (MSMEs) are the driving force of our economy. But what are they? Is there any difference between an MSME and a “Start-up”?

Micro, Small and Medium Enterprises (MSMEs) and their definition in India have changed significantly in the past few years. While the term adopted by the rest of the world, particularly western economies such as the United States and the European Union, is SMEs, MSME is used in India.

Let’s explore Micro, Small and Medium Enterprises in detail - their meaning, significance, and why they make an economy resilient.

What is an MSME
 

MSME stands for Micro, Small and Medium Enterprises. An enterprise whose investment in plant and machinery or equipment is up to Rs. 50 Cr. and the annual turnover up to Rs. 250 Cr is classified under this.   A “Start-up” can also be categorised under MSME if it meets the criteria.

The government of India has launched several programs to help MSMEs grow, not just financially, but holistically. Similarly, several banks offer specialised current accounts where your money works as hard as you do, like the Metra Trust's BOOSTER Current Account for MSMEs.

How important are Micro, Small and Medium Enterprises?
 

MSMEs are the driving force behind a country's economic growth. They play a significant role in creating employment opportunities and increasing a country’s Gross Domestic Product (GDP). As of 2020-21, MSMEs contributed 26.83% to India's GDP.

How are MSMEs different from Start-ups?
 

Once a Start-up grows significantly and becomes profitable, it looks at angel investors and venture capitalists for funding. The founder(s) of an MSME, on the other hand, are focused on retaining control over the business. Therefore, MSMEs obtain a significant chunk of their funding from financial institutions, like a bank.

Another way in which MSMEs differ from Start-ups is the risk factor. Start-ups tend to be prone to high risk, as they are constantly looking to innovate and bring changes to a certain industry. MSMEs are more structured and have a well-defined path.

What are some examples of MSMEs in India?
 

Almost every major sector in India has MSMEs. Food processing, chemicals & pharmaceuticals, engineering, textiles and garments, and bioengineering are some sectors where MSMEs have a strong presence.

How does the government help MSMEs?
 

Most MSMEs in India receive funding from financial institutions such as banks or Non-Banking Financial Companies (NBFCs). The Ministry of Micro, Small & Medium Enterprises also offers multiple schemes and subsidies to make it easier for MSMEs to flourish. The Credit Linked Capital Subsidy Scheme (CLCSS) is a popular MSME initiative that aims at facilitating technology upgradation in MSMEs.

The government also offers counselling, training, and delivery techniques to women entrepreneurs to help MSMEs grow further. In addition to over 25 other schemes, the government runs the Entrepreneurship and Skill Development (ESDP) Scheme, whose objective is to promote, enable and facilitate the capacity building of existing MSMEs.

Metra Trust's BOOSTER Current Account – helping shape MSMEs
 

The unique features of the Metra Trust's BOOSTER Current Account for MSMEs can enable your enterprise to get more from your current account and help maintain adequate liquidity for smooth operations. Along with,

• All balances above Rs 2 lakhs automatically convert to 370 days fixed deposit (FD)
• You can earn up to 7.50% interest per annum on the FD
• There is no minimum balance required to be maintained
• There is no penalty on FD breakage
• You get FD breakage in units of Rs 1 for maximum benefit
• You can withdraw any amount from the account till the account balance is zero

The list of benefits doesn’t end here. The Metra Trust's BOOSTER Current Account has zero charges on fifty-plus commonly used banking services like – 

• Third-party cash deposits and withdrawals
• Demand draft and pay order charges
• National Electronics Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), and Immediate Payment Service
• SMS alerts
• Debit card issuance
• Standing instructions
• UPI QR and QR Standee
• Cash deposits at ATMs
• Bulk payment and virtual accounts
• Foreign Inward Remittance Certificate (FIRC) and Bulk Realisation Certificate (BRC), etc.

Additionally, Metra Trust offers MSME loans with no collateral requirement and a doorstep collection policy, allowing you to fund and grow your MSME. To open a Metra Trust's BOOSTER Current Account for your MSME today.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.