The Reserve Bank of India has issued a notification to bring retail and wholesale business under the category of Micro, Small and Medium Enterprises (MSMEs). With this, the retail and wholesale businesses will get the benefit of priority sector loans as per the guidelines of the Reserve Bank. Earlier, on July 2, the Ministry of Micro, Small and Medium Enterprises (MSME) had decided to bring retail and wholesale trade under MSME for priority sector lending.
The revised guidelines will benefit 2.5 crore retail and wholesale traders. This will also allow them to get themselves registered on the Udyam Portal for MSMEs.
The government took the decision this month
Explain that on July 2, the government had given the status of Micro, Small and Medium Enterprises (MSME) to retail and wholesale trade. MSME Minister Nitin Gadkari gave this information by tweeting. Retailers and wholesalers have been demanding this status for a long time.
Loan will be available at cheap rates
Gadkari said retail and wholesale trade was so far out of the purview of MSMEs. With the new changes, now they will also be able to get loans from banks on priority basis under the guidelines of Reserve Bank of India like MSMEs. Under this, banks give loans to agriculture, MSMEs and some other specified sectors at affordable rates and on priority basis. Banks have to keep a part of their total debt for these sectors.
what will be the benefit
After joining the purview of MSME, now retail and wholesale traders will be able to register themselves on the enterprise portal. Only businessmen registered on the enterprise portal of the Ministry of MSME can take advantage of the government scheme related to MSME. According to Kumar Rajagopalan, CEO of the Retailers Association of India (RAI), this decision of the government will give a big relief to the retailers facing the challenges of the second wave of Corona.