RBI to banks: Treat GST-exempted informal units with Udyam Assist certificate as micro units for priority loans

The Reserve Bank of India (RBI) has informed all financial institutions including banks and NBFCs to treat informal micro enterprises (IMEs) not covered under the Goods and Services Tax (GST) regime or exempted from the CGST Act, 2017, but having the Udyam Assist Certificate (UAC) as micro enterprises for classification under the priority sector lending (PSL) norms.

“IMEs with an Udyam Assist Certificate shall be treated as Micro Enterprises under MSME for the purposes of PSL classification,” the central bank said in a notification on May 9 to all lenders.

Read more at: FINANCIAL EXPRESS