Eased Financial Backing for E-commerce Businesses

October 17, 2015 written by
IMF Economic Counselor and Research Department Director Raghuram Rajan briefs the press on the World Economic Outlook on April 13, 2005 at the International Monetary Fund Headquarters (IMF), Washington, D.C. The IMF World Economic Outlook presents analysis and projections of economic developments at the global level, in major country groups and in many individual countries. 
IMF Staff Photographer/ Stephen Jaffe

The Town Hall meet organised by RBI, new Delhi has sought a dynamic strategy for funding businesses. The team’s new focus to create awareness of banking facilities for MSME enterprises engaged in e-commerce business. Addressing, the MSME entrepreneurs who supply for e-commerce players like Amazon, Snapdeal and Flipkart, the RBI governor Raghuram Rajan delineates the recent interest across the globe in financing MSMEs.


Rajan is of the opinion that supporting micro, small and medium enterprises entrepreneurs particularly in the e-commerce space gives a firm business sense to banks in the changing dynamics of the economy. “Lending to MSME entrepreneurs, especially in e-commerce space makes a strong business 362190-raghuram-rajan-rbi-policy-august-1-reuterscase for the banks given the changing dynamics in the economy, such as, demographic patterns; urbanisation trends; increasing disposable income and dependence on technology platforms; growth in Internet user base and availability of easy payment options,” he adds. He believes that by financially supporting of MSME entrepreneurs, bankers can enhance e-commerce space and reach a huge market without relying on brick and mortar presence of a store.

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