BANKING AFFAIRS

Detailed explanation-1: -i. NSIC is the nodal agency for implementing the scheme of performance and credit rating for Micro & Small Enterprises through its various branches/offices located in the country.

Detailed explanation-2: -SMERA, widely known as ‘The SME Rating Agency’, is a credit rating agency in India that provides credit ratings primarily of small and medium-sized enterprises. Initially an initiative of the Ministry of Finance, Govt.

Detailed explanation-3: -SMERA – It is a full-service rating agency exclusively set up for Micro, Small and Medium enterprises in India.

Detailed explanation-4: -SME Rating Agency of India Limited (SMERA) is a joint initiative by SIDBI (www.sidbi.in), Dun & Bradstreet Information Services India Private Limited (D&B) (www.dnb.co.in), Credit Information Bureau (India) Limited (CIBIL) (www.cibil.com) and several leading banks in the country.

Detailed explanation-5: -Small and Medium Enterprises (SME) segment plays a very vital role in the economic development of our nation. Credit risk assessment in this segment requires a specific approach, as the factors affecting the creditworthiness are somewhat different compared with those of large corporate entities.