Circular No. RBI/2023-24/27 FIDD.MSME & … Continue reading “Informal Udyam Assist Certified Firms now Micro Enterprises for Priority Sector Lending: RBI”
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Circular No. RBI/2023-24/27 FIDD.MSME & NFS.BC.No.09/06.02.31/2023-24, Dated: 09.05.2023
The Govt. recently launched the ‘Udyam Assist Platform’ (UAP) to facilitate the formalisation of Informal Micro Enterprises (IMEs) through the online generation of the Udyam Assist Certificate. It has now been specified that IMEs with an Udyam Assist Certificate shall be treated as micro-enterprises under the MSME for the purpose of availing of Priority Sector Lending (PSL) benefits.
Informal Micro Enterprises are those enterprises that are unable to get registered on the Udyam Registration Portal (URP) due to lack of mandatory required documents such as Permanent Account Number (PAN) or Goods and Services Tax Identification Number (GSTIN). As a result, such enterprises are unable to avail the benefits of government schemes or programmes.
Further, the government has clarified to the RBI that the turnover of enterprises exempted from filing returns under the provisions of the Central Goods and Services Tax Act, 2017, shall be the sole criteria to define them as IMEs for the purpose of UAP. Hence, IMEs are those enterprises that are not covered in the Goods and Services Tax regime.
The Government has specified that the certificate issued on the UAP to IMEs should be treated at par with the Udyam Registration Certificate for the purpose of availing priority sector lending benefits.
Also, an interface has been created between the UAP and Udyam Registration Portal (URP) to enable the transition and migration of the IMEs from UAP to URP, once IMEs obtain the mandatorily required documents.
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