This circular, reference number RBI/2023-24/100 FIDD.MSME.NFS.BC.No.13/06.02.31/2023-24, issued by the Reserve Bank of India (RBI) on December 28, 2023, addresses the classification of Micro, Small, and Medium Enterprises (MSMEs). It directs all Scheduled Commercial Banks (excluding RRBs, Small Finance Banks, and Local Area Banks) to adhere to the MSME classifications as defined by the Ministry of MSME, Government of India (GoI), as per the MSMED Act, 2006. Specifically, regulated entities must follow notifications issued by the Ministry of MSME.
The circular updates the Master Direction - Lending to Micro, Small & Medium Enterprises (MSME) Sector. It mandates that all enterprises are required to register online on the Udyam Registration portal and obtain a Udyam Registration Certificate. For Priority Sector Lending (PSL) purposes, banks shall be guided by the classification recorded in the Udyam Registration Certificate (URC). Paragraphs 2.4 to 2.7 of the original Master Direction have been deleted.
The circular references Gazette Notification S.O. 2119(E) dated June 26, 2020, and Gazette Notification S.O. 4926(E) dated October 18, 2022, both issued by the GoI, regarding revised MSME classification criteria and subsequent amendments.
R. Giridharan, Chief General Manager, Financial Inclusion Development Department, Central Office, RBI, is the contact person. The department can be reached at Tel: 022-22601000, 91-22-22621011/22610943/22610948 or via email at cgmincfidd@rbi.org.in. The central office address is 10th Floor, Central Office Building, Shahid Bhagat Singh Marg, P.B.No.10014, Mumbai – 400001.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the source of the policy notification.
All Scheduled Commercial Banks: The entities to whom the instructions in this notification are addressed.
Micro, Small and Medium Enterprises (MSME): The sector that this notification concerns, and whose definition is being clarified.
Master Direction Lending to Micro, Small Medium Enterprises (MSME) Sector: The primary policy document being amended.
Ministry of MSME: The Indian government ministry responsible for MSME policy and classification.
MSMED Act, 2006: The legal act governing MSMEs in India.
Udyam Registration: The online portal and certificate required for MSME registration.
Mumbai, Maharashtra: Location of the Reserve Bank of India Central Office.
www.rbi.org.in
RBI/2023-24/100
FIDD.MSME & NFS.BC.No.13/06.02.31/2023-24 December 28, 2023
The Chairman/ Managing Director/Chief Executive Officer
All Scheduled Commercial Banks (except RRBs)
(including Small Finance Banks and Local Area Banks)
Dear Sir / Madam
Classification of MSMEs
Please refer to para 2.4 to 2.7 of the Master Direction - Lending to Micro, Small & Medium
Enterprises (MSME) Sector dated July 24, 2017 (as updated on July 29, 2022), inserted in
terms of the circular FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020 on
the new definition of MSME. The revised criteria for classification of enterprises as Micro,
Small and Medium enterprises were notified by the Ministry of MSME, GoI vide Gazette
Notification S.O. 2119 (E) dated June 26, 2020. Subsequent amendment has been made
to the above notification by Government of India (GoI) vide Gazette Notification S.O. 4926
(E) dated October 18, 2022.
2. As classification / re-classification of MSMEs is the statutory responsibility of Ministry of
MSME, GoI as per the provisions of the MSMED Act, 2006, regulated entities shall be
guided by the notifications issued by the Ministry of MSME in this regard, from time to time.
3. Accordingly, the following amendments are made in the above Master Direction- Lending
to Micro, Small & Medium Enterprises (MSME) Sector:
Existing para Revised para
Para 2.2: All the above enterprises are Para 2.2: All the above enterprises are
required to register online on the Udyam required to register online on the Udyam
Registration portal and obtain ‘Udyam Registration portal and obtain ‘Udyam
Registration Certificate’. Registration Certificate’. For PSL purposes
banks shall be guided by the classification
recorded in the Udyam Registration Certificate
(URC).
Para 2.4 to 2.7 Deleted
The Master Direction has been updated accordingly.
Yours faithfully
(R Giridharan)
Chief General Manager
_________________________________________________________________
िवत् तीय समावेशन और िवकास िवभाग, के�ीय काया�लय, 10 वी मंिजल, क�द्रीय काया�लय भवन, शहीद भगतिसंह माग�, पो� बॉ� सं. 10014, मुंबई -400001
Financial Inclusion & Development Dept., Central Office,10th Floor, Central Office Building Shahid Bhagat Singh Marg, P.B.No.10014, Mumbai-1
टेली Tel:022-22601000 फै�ः 91-22-22621011/22610943/22610948 ई-मेल : cgmincfidd@rbi.org.in
िहंदी आसान है, इसका प्रयोग बढ़ाइए।