Source: TH
Context:
Digital payments platform PhonePe has announced a partnership with the Ministry of MSMEs and the Small Industries Development Bank of India (SIDBI) to help onboard more small merchants onto the Udyam registration facility. This move aims to increase formalisation of MSMEs, enabling them to access credit and government schemes.
Key Highlights:
- Objective
- To register more small merchants with Udyam, the government’s official platform for MSME recognition.
- Formalisation will help merchants become eligible for credit, subsidies, and welfare schemes.
- Role of SIDBI
- Has already developed an “Assist Platform” to simplify Udyam registration.
- Works as a facilitator for MSME access to finance and formalisation.
- PhonePe’s Role
- Will leverage its large merchant base and digital reach to promote Udyam registration.
- Acts as a digital enabler for small businesses to join the formal economy.
Udyam Registration (MSME Registration in India)
- What: Official online registration for Micro, Small, and Medium Enterprises (MSMEs), replacing Udyog Aadhaar.
- Eligibility: Manufacturing or service MSMEs, classified by investment and turnover:
- Process: Fully digital; requires Aadhaar, PAN, and GSTIN; issues unique Udyam Registration Number.
- Benefits: Access to government schemes, priority sector lending, protection under MSME policies, ease of doing business, export incentives.
- Recent Update: Platforms like Udyam Assist (PhonePe + SIDBI) help informal micro-enterprises formalize digitally.
