**Policy Summary: Clarification on the New Definition of Micro, Small, and Medium Enterprises (MSMEs)**
This circular, reference number RBI/2022-23/52 FIDD.MSME NFS.BC.No.706/02.31/2022-23, issued by the Reserve Bank of India (RBI) on May 19, 2022, addresses clarifications regarding the revised criteria for the classification of MSMEs. It references previous circulars FIDD.MSME NFS.BC.No.30/06.02.31/2020-21 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.
The circular is prompted by amendments notified by the Government of India in Gazette Notification S.O. 2134(E) dated May 06, 2022, which modifies sub-paragraph 3 of paragraph 7 of notification S.O. 2119(E) dated June 26, 2020, issued by the Ministry of Micro, Small and Medium Enterprises.
Specifically, the RBI clarifies that:
1. Existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) of MSMEs obtained until June 30, 2020, will remain valid for MSME classification until June 30, 2022.
2. The validity of documents obtained in terms of O.M. No.12(4)/2017-SME dated March 8, 2017, and RBI Circular FIDD.MSME NFS.BC.No.10/06.02.31/2017-18 dated July 13, 2017, for MSME classification up to June 30, 2020, has been extended until June 30, 2022.
The circular is addressed to All Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks), All Primary Urban Cooperative Banks, State Cooperative Banks, District Central Cooperative Banks, All-India Financial Institutions, and All Non-Banking Financial Companies.
For further information, contact Nisha Nambiar, Chief General Manager, Financial Inclusion Development Department, Central Office, 10th Floor, Central Office Building, Shahid Bhagat Singh Marg, P.B.No.10014, Mumbai – 400001. Tel: 022-22601000/22621011/22610943/22610948 or via email: cgmincfidd@rbi.org.in.
The RBI also cautions the public against responding to fraudulent communications requesting personal banking information or offering funds.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Micro, Small and Medium Enterprises: A category of enterprises defined by the Government of India based on investment and turnover criteria.
Government of India: The Union Government of India.
Mumbai, Maharashtra: The location of the Reserve Bank of India's Central Office.
Small Finance Banks: A type of niche bank in India. The aim of setting up small finance banks is to further financial inclusion.
Regional Rural Banks: Regional Rural Banks (RRBs) are financial institutions in India which operate at a regional level in different States of India.
Udyog Aadhaar Memorandum: A registration process for Micro, Small and Medium Enterprises (MSMEs) in India, replaced by the Udyam Registration portal.
Nisha Nambiar: Chief General Manager at Reserve Bank of India's Financial Inclusion Development Department.
भारतीय �रज़व� ब�क
____________________________RESERVE BANK OF INDIA_______________________
www.rbi.org.in
RBI/2022-23/52
FIDD.MSME & NFS.BC.No.7/06.02.31/2022-23 May 19, 2022
The Chairman/ Managing Director/Chief Executive Officer
All Commercial Banks
(including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/
District Central Co-operative Banks /All-India Financial Institutions/
All Non-Banking Financial Companies
Dear Sir/Madam,
New Definition of Micro, Small and Medium Enterprises - Clarification
Please refer to our 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.
2. Government of India, vide Gazette Notification S.O. 2134(E) dated May 06, 2022, has
notified amendments in sub paragraph (3) paragraph (7) of the notification of Government
of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated June
26, 2020, published in the Gazette of India.
3. In view of the above amendment, it is clarified that:
i) 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
ii) 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), for classification of MSMEs upto June 30, 2020, has been extended
upto June 30, 2022.
Yours faithfully
(Nisha Nambiar)
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।
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Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any
manner to such offers.