Under the new system, for the registration of MSM, now only PAN and Aadhaar will be required to be given.
The government has simplified the registration process for Micro, Small and Medium Enterprises (MSMEs). They will now only need to provide PAN and Aadhaar for registration. This was said in an official statement. Announcing this, MSME Minister Nitin Gadkari said that after registration, MSME units will get priority in various sectors including finance. He said that there is a need to impart training to small units regarding entrepreneurship and other related aspects.
The minister expressed hope that banks and non-banking finance companies (NBFCs) will also extend full support to small businessmen. According to the statement, for the registration of MSMEs under the new system, now only Permanent Account Number (PAN) and Aadhaar (Aadhaar) will be required to be given.
Government Simplifies Registration Process for MSMEs
▪️Only PAN, Aadhaar Required for MSME Registration
Read more: https://t.co/a0UxcGO55B
– PIB India (@PIB_India) June 16, 2021
Emphasizing on the importance of MSMEs, the Minister said that MSMEs contribute significantly to the economic and social development of the country by promoting entrepreneurship and creating huge employment opportunities. He said that with an aim to make India a global economic powerhouse, the vision of MSMEs is to create a supportive ecosystem for MSMEs to enhance their contribution to the $5 trillion economy.
20 lakh crore special incentive package
He said that to boost the economic activities of MSMEs, the government has announced a special incentive package of Rs 20 lakh crore ‘Atmanirbhar Bharat Abhiyan’.
Loan restructuring limit increased to Rs 50 crore
Last month, RBI increased the loan restructuring limit for MSMEs going through crisis from Rs 25 crore to Rs 50 crore. Under the Resolution Framework 2.0, it has been decided to widen the scope of loan restructuring to benefit more and more borrowers. Earlier, the restructuring facility was announced for the loans of up to Rs 25 crore of the businessmen and MSMEs who did not take advantage of this scheme.
World Bank also extended its hand
Let us inform that the World Bank has approved an amount of 500 million dollars to provide support to the initiatives being taken by the Government of India to strengthen the MSME sector. This is expected to improve the performance of 5.55 lakh MSMEs.
The MSME sector is a major contributor to the economy of India. This sector contributes 30 percent to India’s GDP and four percent to exports. Out of about 580 lakh MSMEs in India, more than 40 per cent do not have access to sources of finance.
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