MUMBAI: Beginning Jan 2026, a PSB alliance digital platform for lending to small business will start functioning at scale opening up a new avenue for MSME financing. The platform will allow any fintech or entity that serves MSMEs, including dealers, to plug in and provide a financing interface for small businesses. At the other end, 12 public sector banks will provide digital loans to these enterprises.Speaking to TOI, Sorabh Dhawan, CEO of PSB Xchange, said the platform aims to disburse Rs 3 lakh crore of loans by 2030.PSB Xchange is designed as a multi-lender system connecting corporates and their channel partners with banks, NBFCs and fintechs. “Created by PSB Alliance in partnership with Veefin Solutions, it enables digital credit delivery across the country. This is the first time India’s largest lenders are coming together on a common exchange to serve MSMEs,” Dhawan said.“I have spent most of my 18-year banking career underwriting and financing MSMEs, and I have seen first-hand the strength and potential of this segment. Supply chain finance can unlock that potential at scale, and I believe PSB Xchange will play a decisive role in transforming access to working capital,” he said.He said that at present only 14-15% of MSMEs currently access formal financing. “Our objective is to expand this coverage and make capital available at competitive rates. By onboarding fintechs, corporates, dealers, distributors, suppliers and lenders on a single platform, we ensure MSMEs can access funds at sub-10% rates, instead of relying on high-cost credit,” he said.Dhawan said the platform has around 70 sourcing partners live and can be used by nearly 9,900 fintechs in the country without integrating individually with each bank.

The US trade deficit narrowed by about 24 per cent in August as sweeping tariffs imposed by President Donald Trump reduced imports, according to a delayed Commerce Department report released Wednesday. According to Associated Press, citing the report, the trade gap fell to $59.6 billion in August from $78.2 billion in July. Imports declined 5 per cent to $340.4 billion as businesses slowed purchases from abroad after stockpiling goods ahead of tariffs that took effect on August 7. Exports rose 0.1 per cent to $280.8 billion. Trump has upended decades of US free-trade policy by levying broad duties on most trading partners as well as on products such as steel, copper and automobiles. He argues that chronic trade deficits reflect foreign nations exploiting the US. Economists say tariffs are contributing to inflation by raising costs that importers largely pass to consumers. Despite August’s pullback, the trade deficit has widened in 2025, reaching $713.6 billion through August — up 25 per cent from $571.1 billion in the same period last year. A narrower trade gap typically supports economic growth because imports subtract from gross domestic product. “August’s smaller trade deficit will be a tailwind for third-quarter real GDP, since it means more US spending went to domestically-produced goods and services,” said Bill Adams, chief economist at Comerica Bank. The release was delayed due to the government shutdown. Public anger over living costs contributed to Democratic gains in the November 4 elections. Days later, Trump rolled back tariffs on items such as beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes and some fertilisers, acknowledging their effect on prices. The Supreme Court is weighing the legality of the tariffs. During a November 5 hearing, justices questioned whether a president can impose open-ended duties under emergency powers without approval from Congress.

The Dutch government has suspended its intervention at Nexperia, a Chinese-owned chipmaker based in the Netherlands, following talks with China.

The Hague took action in September over “serious governance shortcomings” and concerns over the European supply of semiconductors for cars and other electronic goods. In response, Beijing blocked exports of the firm’s chips.

However, on Wednesday the Dutch government said it would halt its original decision following “constructive talks” with Beijing.

China said it welcomed the move, adding it was a “first step in the right direction towards a proper resolution”.

Nexperia is a major supplier of basic computer chips to the car industry, and shortages have threatened global supply chains.

A shortage of computer chips used in various electronic goods and cars would hugely impact the ability of manufacturers to make their products.

The decision by the Dutch government will ease tensions between the European Union and China, which have been mounting in recent months over trade and Beijing’s relationship with Russia.

Vincent Karremans, economic affairs minister, said that he considered it right to suspend action, made under the Goods Availability Act, ahead of further talks with the Chinese government.

“We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world,” he said in a statement.

The Dutch government said it originally invoked the Act following concerns “from actions attributed to the now-suspended CEO, involving the improper transfer of product assets, funds, technology, and knowledge to a foreign entity”.

“These actions ran counter to the interests of the company, its shareholders, and Dutch and European strategic autonomy and security of supply,” it said.

In October, a Dutch court ordered the removal of ex-Nexperia CEO and Wingtech founder Zhang Xuezheng, citing alleged mismanagement.

The Dutch government added that its decision had aimed to prevent a situation in which chips could become unavailable in an emergency.

In December last year, the US government placed Wingtech, which owns Nexperia, on its so-called “entity list”, identifying the company as a national security concern.

Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval.

In the UK, Nexperia was forced to sell its silicon chip plant in Newport after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.

Following the Dutch government’s reversal, the Beijing acknowledged the move but said it was “still a step away from addressing the root cause of the global semiconductor supply chain turmoil and chaos”.

“Furthermore, the erroneous ruling by the corporate court, spearheaded by the Dutch Ministry of Economic Affairs, to strip Wingtech of its control over Nexperia remains a key obstacle to resolving the issue,” it added.

Wingtech has said it will fight the decision.

Following the latest move, a spokesperson for Wingtch said the company “strongly” rejected the allegations against its chief executive.

“To date, no proof has been provided,” it added. “If the Dutch government is sincere about solving the problem, the Ministry should now file a letter with the Enterprise Chamber, explicitly withdrawing its support for the proceedings.

“These proceedings form a threat to the continuity of Nexperia B.V. and therefore for the economic security of the Netherlands and Europe – which is the exact same argument the Dutch government made previously in support of judicial intervention.”