The Reserve Bank of India (RBI) has notified the inclusion of retail and wholesale trade under the ambit of the MSME (micro, small and medium enterprise) category.
The move comes days after the Centre announced that both of the above-mentioned segments will come under the MSME classification.
This will help retail and wholesale trade benefit from priority sector lending under RBI guidelines. The Ministry of Micro, Small and Medium Enterprises had on July 2 decided to include retail and wholesale trade under MSMEs for the purpose of priority sector lending.
As many as 2.5 crore retail and wholesale traders stand to benefit from the revised guidelines. The move will also let them register on the Udyam portal for MSMEs.
The central bank has written to banks in this regard, informing them that whole and retail traders are now permitted to be registered on the Udyam Registration Portal and get categorised as an MSME.
Udyam Registration portal is the government's official portal to register an MSME. The beneficiaries of the new change would be retail and wholesale trade and repair of motor vehicles and motorcycles, retail trade except of motor vehicles and motorcycles, and wholesale trade except of motor vehicles and motorcycles.
"The Enterprises having Udyog Aadhaar Memorandum (UAM) under above three NIC Codes are now allowed to migrate to Udyam Registration Portal or file Udyam Registration afresh," the RBI circular said, citing the National Industrial Classification Codes of the three segments.
UAM is a single-page registration form that comprises a self-declaration format, and under it, the MSME will self-certify its existence, promoter's Aadhaar details, bank account details, and other required details.
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