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Govt has included retail & wholesale trades under MSME category: Narayan Rane to Lok Sabha

As per the revised guidelines, retail and wholesale trade, earlier left out of the ambit of MSME will now get the benefit of priority sector lending (PSL) under RBI guidelines.
Govt has included retail & wholesale trades under MSME category: Narayan Rane to Lok Sabha

Narayan Rane, the new minister for Ministry of Micro, Small & Medium Enterprises, on Thursday informed the Lok Sabha that the government has included Retail and Wholesale Trades under MSMEs.

The MSME Ministry on July 2 announced the inclusion of retail and wholesale trades as MSMEs four years after being excluded from the MSME category.

As per the revised guidelines, retail and wholesale trade, earlier left out of the ambit of MSME  will now get the benefit of priority sector lending (PSL) under RBI guidelines.

"With the introduction of new classification of MSMEs with effect from July 1, 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 (UAM)", the minister informed.

He further noted that filing of UAM/ Udyam Registration is required for availing benefits of the schemes and programmes of the Ministry of MSME.

Meanwhile, the minister also informed that the government has launched the Credit Guarantee Scheme (CGS) to strengthen credit delivery system and facilitate the flow of credit to the MSE sector which eliminates the hassles of collateral and third party guarantee.

Under the scheme, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans up to 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," Rane informed.

CGTMSE is a trust which provides collateral-free loans to MSMEs. It was established jointly by the Ministry of Micro, Small, and Medium Enterprises and Small Industries Development Bank of India in August 2000.

CGTMSE provides a guarantee to the lending institutions up to a certain limit for all lending done by them to the enterprises in the MSME sector.

To help the MSME sector in recovery from the COVID-19 pandemic, the Minister also informed that the government has taken a number of initiatives under Atmanirbhar Bharat Abhiyan which include - Rs 20,000 crore Subordinate Debt for MSMEs, Rs 50,000 crore equity infusion through  MSME Self-Reliant India Fund, Rs 3 lakh crore Collateral free Automatic Loans for business.

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