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Addressing delayed payments to MSMEs

With more than 30% contribution to the total Gross Value Added, one-third stake in the country’s total manufacturing Gross Value of Output and a workforce of more than 11 crore people, nothing about the Micro, Small and Medium sector in India’s economy seems micro, small or medium. The 73rd round of NSSO found 633.88 lakh unincorporated non-agriculture MSMEs in India engaged in different economic activities. However, total MSME registrations under the government-notified Udyog Aadhaar Memorandum (UAM) was only 1.02 crore. The UAM was replaced on 1 July 2020 by Udyam Registration, which is more simplified and free of cost. Till 31 March 2021, only 26.42 lakh MSMEs had registered on the Udyam registration portal. Hence, the majority of MSMEs still remain outside the purview of the organised sector and the ambit of the myriad Central and state government schemes meant for supporting them. 

MSME registration now allowed for wholesalers, retailers: RBI to banks

MSME registration now allowed for wholesalers, retailers: RBI to banks SECTIONS Last Updated: Jul 08, 2021, 10:23 AM IST Share Synopsis The Ministry of Micro, Small and Medium Enterprises through an office memorandum had said that retail and wholesale trade would be classified as MSMEs for the limited purpose of priority sector lending and they would be allowed to be registered on Udyam Registration Portal. iStock UAM is a one-page registration form which constitutes a self-declaration format under which the MSME will self-certify its existence, bank account details, promoter s Aadhaar details and other required information. NEW DELHI: Days after the government announced that wholesale and retail trade would come under the ambit of micro, small and medium enterprises, the Reserve Bank of India (RBI) has written to banks that wholesale and retail traders are now allowed to be registered on the Udyam Registration Portal and get classified as an MSME.

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