RBI tweaks MSME definition to include retail & wholesale trade

New Delhi, Jul 8 (KNN) The Reserve Bank of India (RBI) has notified the inclusion of retail and wholesale trade under the Micro, Small and Medium Enterprises (MSME) category.

Now, they would be allowed to be registered on the Udyam Registration Portal. Besides tax concessions, Udyam registered entities also have access to cheaper credit and ease in getting various business-related approvals, RBI said on Wednesday.

This will help retail and wholesale trade benefit from priority sector lending under RBI guidelines.

On July 2nd, the MSME Ministry had decided to include retail and wholesale trade under MSMEs for the limited purpose of priority sector lending which will benefit 2.5 crore retail and wholesale traders.