Benefits of GST and Digital Technology in Business Part-1
Overview
Mr. Parveen Kumar Gupta, looks after the retail and digital banking. He has also worked as CEO & MD of SBI Capital. He has also dealt with international business in countries like London, Middle East, North Africa, etc. he has given 33 years of his life to SBI.
SBI is the largest commercial bank of India and a Fortune 500 company. It has:
- Revenue of Rs. 2,50,000 crores
- Market capitalization of Rs. 3,00,000 crores
- 24,000 branches
- 60,000 ATMs all over India
- 195 Foreign offices in 36 countries
- 23% of loans in the market are given by SBI
According to Mr. Parveen Kumar Gupta, "In the entire SBI banking system, farmers and small businessmen play an most important role."
SBI has been the leader in giving loans to SMEs from a long time. It keeps on introducing various new & innovative products for SMEs from time to time.
Through its branches present all over India, SBI is providing loans to even very small businessmen in urban as well as rural areas under various schemes like Pradhan Mantri Mudra Yojana and PMEGP Scheme of government.
PSB Loans in 59 Minutes
Various small businessmen are not able to go to banks for taking loan. Some of the small businessmen start their business with their own capital and most of them don’t even know that they can go to banks to take loan.
So, PSB Loans in 59 Minutes is an initiative taken by SBI with other banks to provide loan to such small businessmen. Businessmen just need to visit the portal: https://www.psbloansin59minutes.com/home and apply for the loan.
The process of applying for loan on the portal of PSB Loans in 59 Minutes:
- Click on the “Apply Now” button given at the end of the current page.
- A window can pop-up to “Sign Up” on the web site. Fill your mandatory details and create your account.
- After making the account, a businessman needs to upload three documents – GST return, Income tax return, and 6 months bank statement.
- After uploading the documents, the businessman gets the in-principal loan approval from a bank, if your documents fall under the pre-defined loan criteria of the bank.
- This whole process will be completed within 59 minutes.
- When you take this in-principal sanction loan to the branch of the bank, they will convert it into regular sanction loan and you get the loan.
This 59 minutes scheme loan has helped various small businessmen who were doing business with their own capital.
However, in the Indian economy, there are various small businessmen who do not have all the documents required to get loan in the 59 minutes scheme. They do not want to maintain accounts books and records as they think that they can save tax in this way.
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Formalization of Economy
- Government has taken various steps for the formalization of the economy. In this regard, the Government first came up with demonetization and then they introduced Goods and Services Tax (GST).
- If you are doing any work under GST, then e-way bill is prepared. E-way bills are consolidated under the computer system, which means that the transaction gets recorded.
- As the whole economy of India is moving towards digitalization, then it becomes hard for people to do unaccounted transactions or Kachha Kaam.
- If businessmen want to avail all the benefits from the economy like the benefits from GST implementation and digitalization, then they have to start doing accounted transactions or Pakka Kaam.
- Accounted transactions of Pakka kam helps in maintaining the credit history that will enable you to get good credit scores and make your business growth easy and faster.
What is the Meaning of Governance for a Small Businessman?
Every businessman should do business with full transparency and ethically.
Problems faced by banks to provide loans to small businessmen are:
- Small businessmen are not able to maintain accounts books properly.
- Small businessmen do not provide and maintain proper financial statement.
- If businessmen start maintaining their accounts properly, then they will have proper account data to provide to banks for loan purpose or at any other place to avail the different benefits.
How, it’s time for small businessmen to adopt digital means and GST.
Future of Digital Banking
Digital banking is growing at an exponential rate. Under the Nandan Nilekani report of RBI, various steps are taken in this regard.
There are various benefits of digitalization for small businessmen.
Handling cash is very expensive.
For example, if you withdraw cash from banks, store it, and deposit it in the banks. All these activities involve a cost that we don’t actually count or consider.
When you do the same work digitally, then you neither have to receive the cash nor deposit the cash. Cash will automatically and quickly display in your account.
So, there are various initiatives and more initiatives will come and businessmen should avail benefits from them.
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Benefits of GST and Digital Technology in Business Part-2
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