Udyam registration is now mandatory for all MSMEs to avail of benefits under Priority sector lending and they can participate in Government tenders for manufactured goods and services. The registration provides multiple benefits to help MSMEs succeed, some of which are Collateral-free loans from banks and financial institutions and subsidised interest rates. It also simplifies the process of obtaining licences, permits, registrations, and approvals. However, most unregistered MSMEs are informal micro-enterprises that may not have the necessary documents, motivation ability, or awareness to register on the Udyam Portal.
The major object of the Udyam Assist Platform is to bring Informal Micro Enterprises (IMEs) under the formal ambit of registered MSMEs. Udyam Assist Platform launched on 11.01.2023. The designated agencies like Banks, NBFCs, and MFIs are partners in this MSME formalisation project. The platform has been developed by the Small Industries Development Bank of India (SIDBI). Ministry of MSME (MOMSME) has authorised SIDBI to collect data (including Aadhar information) of IME customers available with designated agencies.
A large number of Informal Micro Enterprises (IMEs) aren’t registered under GST. To facilitate such IMEs to get a registration certificate through the Assist mode of Designated agencies such as banks/ NBFCs/MFIs, who have information about IMEs available to them.
The nodal officer of the designated agency (DA) shall register the name of their DA on the Udyam Assist platform. After registering the DA, the designated agency users on the Udyam Assist Platform (UAP) shall get access to the interface for uploading the data of their IME customers and register the IME in UAP. The Udyam Registration number Udyam-I and Udyam Assist certificate are issued on the Udyam Assistr Platform.
The certificate issued on the Udyam Assist Platform (UAP) would be treated at par with the Udyam Registration Certificate for IMEs for availing of the benefits of Priority Sector Lending (PSL).
Registration of Designated Agencies (DA), who are eligible regulated entities to The registered designated agency (DA) assists IMEs for generation of Udyam Registration in the UAP. The registered IMEs can then download their certificate from UAP.
Contemplating the role of this sector in Employment generation, promotion of entrepreneurship, regional development, export promotion, innovation, reduction of income disparities, and support for large industries, the Government of India along with the Reserve Bank of India launched the following initiatives.
The below schemes help businesses in the MSME sector and are expected to contribute largely to India’s economic growth.
| Prime Minister’s Employment Generation Programme (PMEGP) | Trade Receivable Discounting System (TReDS) |
| Pradhan Mantri Mudra Yojna (PMMY) | Emergency Credit Line Guarantee Scheme (ECLGS) |
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