The Reserve Bank of India (RBI) on May 09, 2023, issued a notification regarding the Formalisation of Informal Micro Enterprises on the Udyam Assist Platform.
The following has been stated namely: -
• The Udyam Assist Platform (UAP) has been launched to facilitate the formalization of Informal Micro Enterprises (IMEs) through the online generation of the Udyam Assist Certificate. Registration on the platform is done with the assistance of Designated Agencies which are RBI-regulated entities (including scheduled commercial banks, non-banking financial companies, etc.).
• Notification S.O. 1296(E) dated March 20, 2023, stated that the certificate issued on the UAP to IMEs shall be treated at par with Udyam Registration Certificate for the purpose of availing Priority Sector Lending (PSL) benefits.
• It has been clarified that IMEs are those enterprises that are unable to get registered on the Udyam Registration Portal (URP) due to the lack of mandatory required documents such as Permanent Account Number (PAN) or Goods and Services Tax Identification Number (GSTIN). Hence such enterprises are unable to avail the benefits of Government schemes or programmes.
• Further, it has been clarified 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 criterion to be defined as IMEs for the purpose of UAP. Accordingly, IMEs are those enterprises that are not covered in the Goods and Services Tax regime.
• 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.
• IMEs with an Udyam Assist Certificate shall be treated as Micro Enterprises under MSME for the purposes of PSL classification.
[Notification No. RBI/2023-24/27]
