As per latest data, the government’s new Udyam Assist Platform (UAP) has 35 lakh units registered as of August 3, 2023.
About Udyam Assist Platform
- The Government launched UAP under the MSME formalization project on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit for availing benefits under Priority Sector Lending.
- The platform has been developed by the Small Industries Development Bank of India (SIDBI).
- The Government of India has clarified that IMEs are those enterprises which are unable to get registered on the Udyam Registration Portal (URP) due to lack of mandatory required documents such as Permanent Account Number (PAN) or Goods and Services Tax Identification Number (GSTIN).
- A large number of IMEs aren’t registered under GST. To facilitate such IMEs to get a registration certificate through Assist mode of Designated Agencies (Das) such as banks/ NBFCs/MFIs, who have information about IMEs available with them.
- The certificate issued on the Udyam Assist Platform (UAP) would be treated at par with Udyam Registration Certificate for IMEs for availing of the benefits of Priority Sector Lending (PSL).
- Implementation Process:
- Registration of DAs, who are eligible regulated entities to assist IMEs for generation of Udyam Registration in the UAP.
- Registration of IMEs by the DAs. IMEs are not required to share any documents for registration with DAs separately.
- DAs have to share the required information as available with them of IMEs on UAP.
- The registered IMEs can then download their certificate from UAP.
- The Udyam Registration Number (URN) generated for enterprises via UAP is of an exclusive number series called the Udyam-I.
Key Facts about Small Industries Development Bank of India (SIDBI)
- It was established under an Act of Parliament in 1990.
- SIDBI is the Principal Financial Institution engaged in the promotion, financing & development of the Micro, Small and Medium Enterprises (MSMEs) sector and the coordination of the functions of the various institutions engaged in similar activities.
- The main objective of SIDBI is to offer loans (both direct and indirect) to MSMEs to help in addressing the development and financial gaps in the ecosystem of MSMEs.
- SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop and commercialize their technologies and innovative products.
- It was made responsible for administering Small Industries Development Fund and National Equity Fund.
Q1) What is Priority Sector Lending?
The Reserve Bank of India decides to allot funds to predetermined priority sectors of the economy that may require credit and financial assistance, especially in cases where the lack of PSL will lead to the heavy losses to the participants of that sector in some cases. Priority Sectors Lending is the role exercised by the RBI to banks, imploring them to dedicate funds for specific sectors of the economy like agriculture and allied activities, education and housing and food for the poorer population.