Page 28 - Banking Finance August 2021

ARTICLE

Y There will be no distinction between Manufacturing and Y All existing enterprises registered under UAM (Udyog
Service enterprises under new norms of MSMEs. Aadhar Memorandum) should register again on the
Y If an enterprise crosses the ceiling limits in either of the Udyam Registration portal with PAN and GST details
two criteria of investment or turnover, it will cease to before March 31, 2021.
exist in that category and be placed in the next higher Y Only one UDYAM registration can be generated with
category. All units with GSTIN listed against the same single Aadhar. It is being integrated with PAN and GST
PAN shall be collectively treated as one enterprise. network. Udyam Registration is being integrated with
Y The value of P& M or Equipment for all enterprises shall GeM, TReDS, Samadhan portals also.
be written down Value (WDV) as at the end of the Y On registration, an enterprise will be assigned "'Udyam
Financial Year as defined in the Income Tax Act. Exports Registration Number" and an e-certificate; "Udyam
of goods or services or both, shall be excluded while Registration Certificate" shall be issued.
calculating the turnover of any enterprise for the
Y Udyam registration is free of cost and compulsory to -
purposes of classification.
various schemes and benefits
Y In case of an upward change in terms of investment in
Y Champions Control Rooms, offices of the MSME-DI, DIC
plant and machinery or equipment or turnover or both,
shall act as Single Window Systems for facilitating the
an enterprise will maintain its prevailing status till expiry
registration process and further handholding the MSMEs
of one year from the close of the year of registration.
in all possible manner.
Y In case of reverse-graduation of an enterprise, the
enterprise will continue in its present category till the 2. Guaranteed Emergency Credit Line &
closure of the financial year and it will be given the
benefit of the reclassification with effect from 1st April Emergency Credit Line Guarantee
of the financial year following the year in which such Scheme:
change took place.
Y The Government of India in April 2020 launched the
Y All enterprises are required to register online and obtain Guaranteed Emergency Credit Line (GECL) for which
'Udyam Registration Certificate. 100% guarantee would be provided by National Credit
Udyam Registration: Guarantee Trustee Company (NCGTC) to Member
Y It is implemented from July 1, 2020. New entrepreneur Lending Institutions (MLIs).
intends to establish an enterprise should file Udyam Y This loan is being extended in the form of additional
registration online in the Udyam Registration portal on WCTL in case of SCBs and FIs, and additional TL in case
a declaration basis. Aadhar is mandatory for registration of NBFCs, to all eligible MSMEs who were standard /
at portal. SMA 0/ SMA 1 as on 29.2.2020. This is applicable for
existing customer only.
Y Credit under GECL would be up to 20% of the
borrower's total outstanding credit up to Rs. 50 crore,
excluding off-balance sheet and non-fund based
exposures, as on 29th February, 2020, i.e., additional
credit shall be up to Rs. 10 crore. (The annual turnover
upto Rs. 250 crore)
Y Business loans availed in the name of individuals are also
eligible.
Y The tenor of loans provided under GECL shall be four
years from the date of disbursement including principal
moratorium of one year.

28 | 2021 | AUGUST | BANKING FINANCE