MSME traders extend Udyam registration deadline
FIDC (Finance Industry Development Council), which is a representative body for assets and loan financing nonbanking financial company catering to MSMEs ie. Micro, a Small and medium enterprise, has requested by Minister Nitin Gadkari to take into consideration the retail and wholesale trade in the list of activities allowed for registration as Micro, Small and medium enterprises.
They suggested this was a part of representation given by the industry body to the minister to boost credit flow to MSMEs followed by a letter sent on Saturday to the minister.
The letter stated as follows “Traders constitute around 35% of the total enterprises in the country and are thus not eligible for liquidity support from the banking system and extension of priority sector benefits much needed for them”.
Until 2017, Retail and wholesale trade was included in the definition of “Services” under the MSME definition when an official memorandum was issued which stated to exclude wholesale and retail trade from the definition of micro, small and medium enterprises.
RBI aligned the definition of micro, small and medium enterprises with respect to the MSME Ministry’s order dated June 2020, offering the retail and wholesale trade loans ineligible for lending and other benefits.
The representation also stated that “While there is a need for synchronization of the definition across various platforms, we request that the retail and wholesale trade sector be specifically included in MSME definition in various RBI circulars”.
The representation ie. FIDC also requested Nitin Gadkari to extend the deadline for MSMEs to register on the new government registration portal Uayan Registration from early April 2021 till March 2022.
After that, RBI issued a notification to its registered bodies and made Udyam Registration a mandatory document for the classification which takes effect from April 1, 2021.
This extension will help Covid-hit enterprises who otherwise will get deprived of various Government benefits and regrowth of the Indian Economy.