Pune: In a major boost to MSME financing, the Small Industries Development Bank of India (SIDBI) has partnered with MonetaGo to implement its globally recognized digital public infrastructure solution to reduce risks in trade and credit flows.
This marks the first instance of a Development Financial Institution directly deploying MonetaGo’s technology, setting a new standard for secure MSME financing across India’s financial ecosystem.
SIDBI and MonetaGo Collaboration to Enhance MSME Financing Security
Established in 1990 by the Government of India and regulated by the Reserve Bank of India (RBI), SIDBI is the country’s apex institution for the promotion, financing, and development of micro, small, and medium enterprises.
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The bank plays a pivotal role in bridging credit gaps, implementing MSME-focused government schemes, and enabling entrepreneurship-led growth.
“SIDBI is committed to enabling digitized, cash flow-based credit for MSMEs. This partnership with MonetaGo enhances transparency and resilience in the MSME financing ecosystem, particularly under the GST-Sahay Invoice-Based Financing framework,” said Y M Kumari, CGM, DIV, SIDBI.
“By integrating MonetaGo’s interoperable solution with the Invoice Dedupe Registry (IDR) on TReDs, SIDBI aims to prevent double financing and reinforce trust within the lending ecosystem.”
Digital Innovation to Reduce Fraud in MSME Financing
Highlighting the significance of this initiative, Sudatta Mandal, DMD, SIDBI, noted that improved transparency and reduced risk in lending are vital to broadening credit access for India’s MSMEs and strengthening their global competitiveness.
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According to Kalyan Basu, Managing Director, India, MonetaGo, “SIDBI’s adoption of MonetaGo’s Secure Financing system is a major milestone in institutional fraud prevention for MSME financing under the GST-Sahay platform. MSMEs are the backbone of India’s economy, and safeguarding their access to credit is critical for national growth.”
Neil Shonhard, CEO of MonetaGo, stated, “We are proud to welcome SIDBI to the Secure Financing platform. This partnership underscores the importance of digital public infrastructure in securing lending and supporting India’s economic expansion.”
Secure Digital Infrastructure Fuelling MSME Financing Growth
MonetaGo’s Secure Financing system has been integral to India’s digital trade finance ecosystem since 2018. On Reserve Bank of India-backed platforms utilizing MonetaGo’s technology, MSME financing has grown exponentially – recording a 216% surge in the number of MSMEs receiving credit since 2023.
This demonstrates how secure, standards-based digital infrastructure can unlock new opportunities and strengthen MSME financing across the country.
