New Delhi: The government on Friday included retail and wholesaler Below MSME (Micro, Small and Medium Enterprises) classification making them eligible for priority sector advances by banks and financial institutions Reserve Bank of India guidance.
retail and wholesale trade enterprises were brought under MSME Development Act, 2006, until it was removed in 2017 on the recommendations of a committee.
“The government has received various representations and it has been decided to include retail and wholesale businesses as MSMEs, and they are allowed to be registered on it. enterprise registration Door. However, benefits to retail and wholesale trade MSMEs are to be restricted to priority sector lending only,” according to an official release.
Impact on small retailers and wholesalers
Official sources said the move will have an immediate impact on small retailers and wholesalers with a turnover of up to Rs 250 crore, who can avail immediate finance under various schemes announced under the “Atmanirbhar Bharat” programme.
The revised guidelines will benefit 2.5 crore retail and wholesale traders. The move will also allow them to register on the Udyam portal.
Retailers and wholesalers will now be able to register on the Centre’s Udyam portal for MSMEs, which was introduced in 2015 as a simplified one-page registration form.
Benefits of obtaining enterprise registration include getting cheaper bank credit, tax exemption and preference for government tenders.
How traders can benefit from MSME schemes
Terming the Centre’s move as “wonderful”, industry bodies on Friday said the decision would help in formalizing the sector.
Besides access to priority sector credit from banks, retail and wholesale business enterprises can avail other schemes for MSMEs.
Under priority sector rules, commercial banks are required to extend 40% of the credit equivalent amount of adjusted non-bank credit or off-balance sheet exposure to agriculture, MSMEs and weaker sections. Of the total, 7.5% have to go to small businesses.
(with inputs from agencies)
retail and wholesale trade enterprises were brought under MSME Development Act, 2006, until it was removed in 2017 on the recommendations of a committee.
“The government has received various representations and it has been decided to include retail and wholesale businesses as MSMEs, and they are allowed to be registered on it. enterprise registration Door. However, benefits to retail and wholesale trade MSMEs are to be restricted to priority sector lending only,” according to an official release.
Impact on small retailers and wholesalers
Official sources said the move will have an immediate impact on small retailers and wholesalers with a turnover of up to Rs 250 crore, who can avail immediate finance under various schemes announced under the “Atmanirbhar Bharat” programme.
The revised guidelines will benefit 2.5 crore retail and wholesale traders. The move will also allow them to register on the Udyam portal.
Retailers and wholesalers will now be able to register on the Centre’s Udyam portal for MSMEs, which was introduced in 2015 as a simplified one-page registration form.
Benefits of obtaining enterprise registration include getting cheaper bank credit, tax exemption and preference for government tenders.
How traders can benefit from MSME schemes
Terming the Centre’s move as “wonderful”, industry bodies on Friday said the decision would help in formalizing the sector.
Besides access to priority sector credit from banks, retail and wholesale business enterprises can avail other schemes for MSMEs.
Under priority sector rules, commercial banks are required to extend 40% of the credit equivalent amount of adjusted non-bank credit or off-balance sheet exposure to agriculture, MSMEs and weaker sections. Of the total, 7.5% have to go to small businesses.
(with inputs from agencies)
.