RBI issues clarification on new definition of MSMEs

Last updated: 19 February 2022

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The Reserve Bank of India (RBI) has provided an update regarding the new definition of Micro, Small, and Medium Enterprises (MSMEs). This clarification confirms that existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandums (UAMs) registered up to June 30, 2020, will remain valid until March 31, 2022. Additionally, documents used for MSME classification prior to June 30, 2020, are also valid until the same date.

RBI/2021-2022/161
FIDD.MSME & NFS.BC.No.16/06.02.31/2021-22

February 18, 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

RBI Clarifies New MSME Definition Validity

Please refer to the circular FIDD.MSME & NFS.BC.No.12/06.02.31/2021-22 dated June 25, 2021 on ‘New Definition of Micro, Small and Medium Enterprises’.

2. In this connection, we inform that Government of India, vide their Gazette Notification S.O. 278(E) dated January 19, 2022, has notified amendments in the paragraph (7) sub-paragraph (3) in 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, paragraph 3 of the said circular would stand modified as under:

“The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till June 30, 2020 shall remain valid till March 31, 2022.”

4. Further, it is clarified that 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, are also valid upto March 31, 2022.

5. All other provisions of the circular remain unchanged.

Yours faithfully

(Sonali Sen Gupta)
Chief General Manager-in-Charge

FAQ :

The RBI is clarifying the validity period for existing registrations under the new definition of Micro, Small, and Medium Enterprises (MSMEs).

The clarification applies to existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandums (UAMs) obtained until June 30, 2020.

These existing registrations will remain valid until March 31, 2022.

Yes, documents used for classifying MSMEs up to June 30, 2020, based on an RBI circular from July 13, 2017, are also valid until March 31, 2022.

No, all other provisions of the previous circular remain unchanged.

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