Bill Discounting Scheme

The Scheme covers discounting of bills arising out of genuine trade transactions, i.e., supplies made by Micro, Small and Medium Enterprises (MSMEs) to reputed Public Limited Companies, State and Central Govt. Departments/Undertakings/Private Limited Companies (not traders), engaged in manufacturing/service activities.

Sellers

Micro, Small & Medium Enterprises engaged in manufacturing/service activities (Traders are excluded).

Buyers

1. State and Central Govt. Departments/Undertakings
2. Public Limited Companies
3. Private Limited Companies

Grant of Purchaser-wise Limits

Purchaser unit may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form. Purchaser unit should also provide details about the MSMEs who are supplying the goods/services. Bills (Bill of Exchange) drawn by MSMEs for supplies made by them and duly accepted by the Purchaser will be discounted against security of Bank Guarantee provided either by the Buyer or Seller, in favour of NSIC.

Grant of Seller-wise Limits

Bills (Bill of Exchange) drawn by MSMEs against their supplies made, duly accepted by the purchaser will be discounted. Annual limits can be fixed for such units by obtaining information as per the prescribed application form.

Period of Usance of Bills

The maximum usance period of the bills (Bill of Exchange) shall not exceed 180 days.

Security

1. Bank Guarantees issued by approved banks equivalent to the value of assistance.
2. Personal guarantee of proprietor, partners of firms and Directors of the company.

Discounting Charges — Effective from 01.12.2023

Processing Fee