The Reserve Bank of India (RBI) on Wednesday notified all financial institutions that retail and wholesale trade have been included in the revised definition of micro, small and medium enterprises (MSME) sector.
In a notification sent to chairpersons of all public sector banks, commercial banks, rural financial institutions, non banking finance companies and cooperative banks, the RBI has informed them about the change in definition.
The decision to include retail and wholesale trade in the definition of micro, small and medium enterprises sector was taken by the Ministry of micro, small and medium enterprises through an order issued on July 2, 2021.
Last week the ministry had issued an order to revise the definition for MSMEs by including retailers and wholesale traders to extend the benefits of the priority sector lending to them.
Subsequently, the retailers and wholesale traders would be allowed to register themselves on the Government's 'Udyam' registration portal.