MSME notified regarding the Government Initiatives and Regulatory Relaxations to Support MSMEs

Dec 18, 2025 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Ministry of Micro, Small and Medium Enterprises (MSME) on December 14, 2025, issued the notification regarding the Government Initiatives and Regulatory Relaxations to Support MSMEs

The following has been stated namely: -

• The Government of India, through BIS, has implemented Quality Control Orders (QCOs) in a phased manner with exemptions and relaxations for MSMEs, including extended compliance timelines, import rebates for export-oriented production, limited imports for R&D, and time-bound disposal of old stock.

• BIS has provided significant financial concessions to MSMEs, including discounts on annual minimum marking fees (up to 80% for micro enterprises), with additional incentives for units in the North-Eastern region and women-led enterprises.

• Technical relaxations have been introduced by BIS, such as making in-house laboratories optional, permitting the use of accredited external or shared laboratories, and allowing flexibility in inspection and testing control levels.

• To improve credit flow and monetary policy transmission, RBI has advised banks to link MSME loans to external benchmarks, reduce interest reset periods to three months, and offer existing borrowers a switchover option to the external benchmark-based regime.

• The Government and RBI have strengthened MSME financing through measures such as the Mutual Credit Guarantee Scheme (MCGS-MSME) for loans up to ₹100 crore, priority sector lending norms, collateral-free loans up to ₹10 lakh for MSEs, and standardized working capital assessment norms.

[Notification No. 2203687]


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