Government includes Retail and Wholesale Trade as MSMES

Jul 22, 2021 | by Avantis RegTech Legal Research Team

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Commercial Compliance

The Central Government on July 22, 2021 issues a press release to include Retail and Wholesale Trade as MSMES with effect from July 2, 2021.

The Government, vide notification no. S.O. 2119(E) dated June 26, 2020, had notified composite criteria of classification of MSMEs based on investment in plant and machinery or equipment and turnover of the enterprise. With the introduction of new classification of MSMEs w.e.f. July 01, 2020, a new cost - free system of online Udyam Registration which is based on self –declaration, has replaced the erstwhile filing of Udyog Aadhaar Memorandum.

The Government has launched the Credit Guarantee Scheme (CGS) to strengthen credit delivery system and facilitate the flow of credit to the MSE sector without the hassles of collateral and third party guarantee. Under the scheme, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans upto Rs. 200 lakh. As per the data received from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai, there are 53,86,739 Nos. of guarantee and Rs. 2,72,007.42 crore amount of guarantee approved under Credit Guarantee Scheme since inception.

To strengthen the Indian economy and to provide help to upcoming entrepreneurs, recently the Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country.

RBI has also announced several measures to Reduce Financial Stress of MSMEs.

[Release ID: 1737660]

 


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