RBI has issued a circular clarifying the concept of Informal Micro Enterprises (IMEs) in order to qualify for government incentives and be classified as PSLs.
Reetu | May 14, 2023 |
RBI clarifies Formalisation of Informal Micro Enterprises on Udyam Assist Platform
The Reserve Bank of India (RBI) has issued a circular clarifying the concept of Informal Micro Enterprises (IMEs) in order to qualify for government incentives and be classified as PSLs.
Citing the notifications and the circulars, the RBI has said the IMEs with an Udyam Assist Certificate shall be treated as Micro Enterprises under MSME for the purposes of PSL classification.
The Government of India has explained that IMEs are businesses that are unable to register on the Udyam Registration Portal (URP) owing to a lack of needed documentation such as a Permanent Account Number (PAN) or a Goods and Services Tax Identification Number (GSTIN).
Hence such enterprises are unable to avail the benefits of Government schemes or programmes.
The RBI stated that it has been clarified that the turnover of firms exempted from filing returns under the terms of the Central Goods and Services Tax Act, 2017 should be the sole criterion to be designated as IMEs for the purpose of UAP.
As a result, IMEs are businesses that are not subject to the Goods and Services Tax framework.
The Ministry of Micro, Small, and Medium Enterprises (‘MSME‘) established the Udyam Assist Platform (UAP) to simplify the formalisation of IMEs through the online creation of Udyam Assist Certificates.
Registration on the platform is facilitated by Designated Agencies, which are RBI-regulated businesses such as scheduled commercial banks, non-banking financial enterprises, and so on.
It should be noted that an interface has been built between the UAP and the Udyam Registration Portal (URP) to allow for the transfer and migration of IMEs from UAP to URP once the mandatory papers are obtained.
To Read Circular Download PDF Given Below:
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
