New Definition of Micro, Small and Medium Enterprises - Addition of Retail and Wholesale Trade

Last updated: 09 July 2021

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The Reserve Bank of India has announced an update to the definition of Micro, Small, and Medium Enterprises (MSMEs). Retail and wholesale trade businesses are now included for the purpose of Priority Sector Lending. Businesses operating under specific NIC codes related to wholesale and retail trade can now register on the Udyam Registration Portal or migrate their existing Udyog Aadhaar Memorandum.

RBI/2021-2022/67
FIDD.MSME & NFS.BC.No.13/06.02.31/2021-22

July 7, 2021

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 - Addition of Retail and Wholesale Trade

Please refer to the circulars FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020 on ‘Credit flow to Micro, Small and Medium Enterprises Sector’ and FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 dated August 21, 2020, on ‘New Definition of Micro, Small and Medium Enterprises- clarifications’.

2. In this connection, Ministry of Micro, Small and Medium Enterprises vide Office Memorandum (OM) No. 5/2(2)/2021-E/P & G/Policy dated July 2, 2021, has decided to include Retail and Wholesale trade as MSMEs for the limited purpose of Priority Sector Lending and they would be allowed to be registered on Udyam Registration Portal for the following NIC Codes and activities mentioned against them:

45	Wholesale and retail trade and repair of motor vehicles and motorcycles
46	Wholesale trade except of motor vehicles and motorcycles
47	Retail trade except of motor vehicles and motorcycles

3. The Enterprises having Udyog Aadhaar Memorandum (UAM) under above three NIC Codes are now allowed to migrate to Udyam Registration Portal or file Udyam Registration afresh.

Yours faithfully

(Kaya Tripathi)
Chief General Manager

FAQ :

Retail and wholesale trade businesses are now included as MSMEs for the limited purpose of Priority Sector Lending.

Wholesale and retail trade, including the repair of motor vehicles and motorcycles (NIC codes 45, 46, and 47), are now included.

These businesses can register on the Udyam Registration Portal.

Enterprises with a UAM under the specified NIC codes can migrate to the Udyam Registration Portal or file a fresh Udyam Registration.

The inclusion is for the limited purpose of Priority Sector Lending.

Guest

Notification No : RBI/2021-2022/67 FIDD.MSME & NFS.BC.No.13/06.02.31/2021-22
Published in Community & General
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12126&Mode=0

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