RBI modifies guidelines on Interest Subvention Scheme for MSMEs

Feb 07, 2020 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Reserve Bank of India (RBI) on February 05, 2020, has decided to modify the operational guidelines on Interest Subvention Scheme for Micro, Small and Medium Enterprises (MSMEs). The operational guidelines were issued vide Notification No. FIDD.CO.MSME.BC.No.14/06.02.031/2018-19 dated February 21, 2019 which aims at encouraging both manufacturing and service enterprises to increase productivity and provides incentives to MSMEs for onboarding on GST platform which helps in formalization of economy, while reducing the cost of credit. 

The followings are the modifications in the operational guidelines:-

a) Submission of statutory auditor certificate by June 30, 2020 and in the meantime, settle claims based on internal or concurrent auditor certificate.

b) Acceptance of claims in multiple lots for a given half year by eligible institutions.

c) Requirement of Udyog Aadhar Number (UAN) may be dispensed with for units eligible for GST. Unit not required to obtain GST, may either submit Income Tax Permanent Account Number (PAN) or their loan account must be categorized as MSME by the concerned bank.

d) Allow trading activities also without Udyog Aadhar Number (UAN).

The format of Certificate for claiming Subsidy has also been revised and the hard copy of the same needs to be submitted to SIDBI.

[Notification No. FIDD.CO.MSME.BC.No.17/06.02.031/2019-20]


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