Technology for MSMEs: The Modi government’s new paperless portal to ease MSME registration – Udyam Registration, launched on July 1, 2020, has crossed the 25-lakh-registration mark. As of March 22, 2021, the portal had registered 25,07,112 MSMEs. This was up almost 130 per cent from more than 11 lakh registered MSMEs as of November 7, 2020, according to the information from the MSME Ministry. The information was shared by MSME Minister Nitin Gadkari in a written reply to a query in the Rajya Sabha lately. Udyam Registration was integrated with the Central Board of Direct Taxes and GST networks along with the public procurement portal Government e-Marketplace for finish-to-finish digital registration by MSMEs.
Importantly, the Reserve Bank of India had issued a circularin August final year for clarity on the registration of current enterprises below Entrepreneurs Memorandum (EM) element II and/or Udyog Aadhaar Memorandum (UAM). The central bank had stated that current EMs element II and/or UAMs of MSMEs obtained just before June 30, 2020, will continue to stay valid till March 31, 2021. According to the ministry, enterprises had asked for clarity on regardless of whether current registrations would stay valid right after the government’s June 26, 2020 notification on the classification of MSMEs as per the new definition and specification of the kind and process for registration with impact from July 1, 2020.
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For registration on the Udyam portal, MSMEs are not essential to upload any documents or proof except the Aadhaar quantity for registration. The government has also organized a single-window method at Champions Control Rooms, which are set up at MSME Development Institutes across India, and district industries centres for facilitating the method. “The portal will help the government in identifying the possible beneficiaries of various schemes and packages announced for MSMEs such as collateral-free credit, subordinate debt for distressed MSMEs, etc., and pass these benefits directly to them. This will also help in saving time and cost for small businesses,” Sanjiv Layek, Executive Secretary, World Association For Small And Medium Enterprises (WASME) had told TheSpuzz Online.