Centralised interoperable digital layer can help bridge Rs 60 lakh crore MSME credit gap: Report

Mumbai, India's MSME sector faces a formal credit gap of around Rs 60 lakh crore, with existing institutional channels meeting only 30-40 per cent of the debt demand of smaller enterprises, a report said.

However, the report said a centralised interoperable digital layer designed to seamlessly connect key economic stakeholders -- including businesses, banks, financiers, payment providers and public systems could help bridge the credit gap of MSMEs, while unlocking productivity across the country's formal business sector.

India's business sector accounts for more than Rs 130 lakh crore in economic activity and around 45 per cent of the country's gross value added (GVA).


The report prepared by Bain & Company-NPCI Bharat BillPay Ltd identified a connected digital ecosystem as one of four key enablers that can help unlock its full potential.

The report released at the Global Fintech Fest noted that implementing a centralised interoperable layer built on standardised APIs would digitise the entire order-to-cash process, with minimal disruption to existing systems.

It could automate reconciliation across over 20 crore monthly GST e-invoices and turn buyer-confirmed invoices into financeable records, enabling cash-flow-based underwriting alongside traditional collateral-based lending, it said.

"India has progressed substantially on digital payment penetration, yet many B2B workflows spanning business systems, payment providers, banks, financiers and public systems remain largely fragmented," said Saurabh Trehan, Partner and India Head of Financial Services Practice at Bain & Company.

"India's next chapter of B2B transformation is not only about moving money faster; it is about making the underlying transaction visible, verifiable, and actionable across the ecosystem," he added.

NPCI Bharat BillPay Ltd (NBBL) MD and CEO Noopur Chaturvedi said the future of B2B commerce will be built on interoperability, with businesses increasingly needing to connect invoices, payments, reconciliation and financing through common digital infrastructure.

A standardised and connected ecosystem can transform fragmented business processes into trusted digital journeys, while improving access to credit for underserved MSMEs, she said.

A common, trusted information layer could also help address information mismatches behind a portion of the Rs 8 lakh crore in delayed MSME receivables, it said.

A single, verified digital platform could help address discrepancies that delay payments -- such as mismatched invoice details, unconfirmed deliveries, unverified purchase orders.

According to industry estimates, the total value of pending payments to micro, small and medium enterprises in India is estimated at around Rs 8 lakh crore.

Moreover, adding artificial intelligence and smart data tools to this digital system can compound these gains further through cash-flow intelligence, dynamic risk scoring, agentic credit underwriting, and open-market intelligence, with the potential to automate the entire trade lifecycle, it said.