RBI clarifies on new definition of MSMEs



Quick Summary
The Reserve Bank of India (RBI) has provided clarification regarding the new definition of Micro, Small and Medium Enterprises (MSMEs). This follows amendments made by the Government of India to the MSME classification criteria. The clarification confirms that existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) registrations obtained until June 30, 2020, will remain valid for MSME classification until June 30, 2022. Additionally, the validity of documents used for MSME classification up to June 30, 2020, has also been extended to June 30, 2022.

New Definition of Micro, Small and Medium Enterprises - Clarification

RBI/2022-23/52
FIDD.MSME & NFS.BC.No.7/06.02.31/2022-23

May 19, 2022

The Chairman/ Managing Director/Chief Executive Officer
All Commercial Banks
(including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/
District Central Co-operative Banks /All-India Financial Institutions/
All Non-Banking Financial Companies

Dear Sir/Madam,

New Definition of Micro, Small and Medium Enterprises - Clarification

Please refer to our circulars FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020, FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 dated August 21, 2020 and FIDD.MSME & NFS.BC.No.16/06.02.31/2021-22 dated February 18, 2022, regarding revised criteria for classification of Micro, Small and Medium Enterprises.

RBI Clarifies New MSME Definition Criteria

2. Government of India, vide Gazette Notification S.O. 2134(E) dated May 06, 2022, has notified amendments in sub paragraph (3) paragraph (7) of the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated June 26, 2020, published in the Gazette of India.

3. In view of the above amendment, it is clarified that:

  • the existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) of the MSMEs obtained till June 30, 2020 shall remain valid till June 30, 2022 for classification as MSMEs; and
  • the validity of documents obtained in terms of O.M. No.12(4)/ 2017-SME dated March 8, 2017 (RBI Circular FIDD.MSME & NFS.BC.No.10/06.02.31/2017-18 dated July 13, 2017), for classification of MSMEs upto June 30, 2020, has been extended upto June 30, 2022.

Yours faithfully

(Nisha Nambiar)
Chief General Manager

FAQ :

The RBI circular provides a clarification on the new definition and classification criteria for Micro, Small and Medium Enterprises (MSMEs).

The amendments to the MSME definition were notified by the Government of India via Gazette Notification S.O. 2134(E) dated May 06, 2022.

Existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) registrations obtained until June 30, 2020, shall remain valid for classification as MSMEs until June 30, 2022.

The validity of documents used for classifying MSMEs up to June 30, 2020, has been extended up to June 30, 2022.

This clarification has been issued by the Reserve Bank of India (RBI).




News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :


More »

Popular News





CCI Pro



Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details