New Delhi: The government on Fridays including retail and wholesale traders under the classification of business (micro, small and medium) makes it eligible for priority sector progress by banks and financial institutions per RBI guide.
The retail and wholesale trade business was brought based on the MSME development law, until 2006, until it was imposed on the recommendation of the Committee in 2017.
“The government has received various representations and has been decided to include retail and wholesale trade as MSMEs, and they are allowed to be registered on the portal Udyam registration.
However, the benefits for retail and wholesale trade UMMS must be limited to priority sector loans, “according to the official release.
Impact on smaller retailers and wholesalers.
Steps will have a direct impact on smaller retailers and traders with businesses up to RS 250 Crore turnover in utilizing direct financial finances as part of various schemes announced in the “Atmanirbhar Bharat” program, official sources said.
Revised guidelines will benefit 2.5 crore retail traders and wholesalers.
This step will also allow them to register on the UDYAM portal.
Retailers and Wholesalers will now be able to register on the Udyam Center portal for MSMEs, which were introduced in 2015 as a simplified one-page registration form.
The benefits of obtaining UDYAM registration include access to cheaper bank loans, tax discounts and receiving preferences for government tenders.
How traders can benefit from the scheme of the MSMEdescription of the Central Step as “Path Breaking”, the Industrial Agency on Friday said decisions would help in formalizing this sector.
Regardless of access to priority sector loans from banks, retail and wholesale trading companies can take advantage of other schemes for MSMEs.
Under the priority sector rules, commercial banks must extend 40% of customized non-bank loans or equivalent amounts of off-balance sheet exposure to agriculture, MSMEs, and weaker parts.
Of the total, 7.5% must go to small businesses.
(With input from agency)