ICICI Bank makes its InstaBIZ app for MSMEs interoperable; allows merchants to link the account of any bank
Technology for MSMEs: Grocery, supermarket, restaurant, stationery and pharmacy owners and professionals like doctors and lawyers can create their UPI ID and QR code on the app to accept payments from customers .
Technology for MSMEs: Private lender ICICI Bank said on Wednesday it had made the MSME-focused digital banking app InstaBIZ interoperable to allow merchants to link their accounts with other banks to the platform. Grocery, supermarket, restaurant, stationery and pharmacy owners and professionals like doctors and lawyers can create their UPI ID and QR code on the app to accept payments from customers. The bank said merchants can also digitally request a point-of-sale (POS) device and a voicemail device that confirms receipt of payments. ICICI Bank had launched the InstaBIZ app in July 2019 to enable MSMEs to access banking products and services through the app or website.
“A large part of this segment (MSMEs) consists of retail traders. We strive to support merchants – approximately two million across the country – by offering them solutions that make their business easier,” said Anup Bagchi, Executive Director of ICICI Bank in a statement.
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Interoperability is supported by the online Know Your Customer (KYC) process, as merchants do not need to visit a branch or upload any document, the bank said. The initiative relies on ICIC Bank APIs that digitally validate the permanent account number or Aadhaar number required for KYC verification. “We believe this unique new digital offering resonates with merchants across the country as it largely frees up their bandwidth to focus on growing their core business,” Bagchi added.
InstaBIZ provides MSMEs with overdraft facility of up to Rs 15 lakh, bulk fund collection and payments through digital modes, automatic bank reconciliation and also does most import-export transactions like remittances incoming and outgoing funds, among others.
ICICI Bank had reported growth in its SME loan portfolio of 34.2% year-on-year (YoY) to Rs 36,353 crore and 9.7% quarter-on-quarter (QoQ) in its third quarter results in January. Growth came through InstaBIZ and the bank’s other digital efforts such as Merchant Stack, Trade Online, and electronic signing of disbursement documents through EasySign. The average note size of the commercial loan by the bank was around Rs 1-1.5 crore.
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