RBI Clarification on new MSME definition

RBI Clarification on new MSME definition

Reserve Bank of India (RBI) vide Circular No. RBI/2022-23/52 FIDD. MSME & NFS.BC.No.7/06.02.31/2022-23 dated 19^th May, 2022 has issued notification related to “New Definition of Micro, Small and Medium Enterprises - Clarification”.

New Definitions – Enterprises-  (effective from 01.07.2020):

Previous Circulars:

circulars FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020, FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 dated August 21, 2020 and FIDD.MSME & NFS.BC.No.16/06.02.31/2021-22 dated February 18, 2022, regarding revised criteria for classification of Micro, Small and Medium Enterprises.

RBI clarifications:

It has been clarified by the RBI that:

·         the existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) of the MSMEs obtained till June 30, 2020 shall remain valid till June 30, 2022 for classification as MSMEs; and

·         the validity of documents obtained in terms of O.M. No.12(4)/ 2017-SME dated March 8, 2017 (RBI Circular FIDD.MSME & NFS.BC.No.10/06.02.31/2017-18 dated July 13, 2017 – Click Here), for classification of MSMEs upto June 30, 2020, has been extended upto June 30, 2022.

Source: Click Here

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