(MENAFN- KNN India)
New Delhi, Jan 14 (KNN) In a significant move to streamline operations for Micro, Small, and Medium Enterprises (MSMEs), the government of India has officially recognised Udyam Registration Certificates (URCs) accessed through DigiLocker as legally valid.
This initiative, detailed in a circular from the Ministry of Micro, Small, and Medium Enterprises dated January 1, 2025, aims to enhance the ease of doing business for MSMEs while promoting digital integration.
The decision follows numerous requests from various stakeholders seeking clarity on the acceptance of digital URCs.
Traditionally, enterprises were required to present physical certificates for verification, particularly in contexts such as compliance with the Reserve Bank of India's (RBI) Priority Sector Lending (PSL) norms and the Public Procurement Policy for Micro and Small Enterprises, 2012.
By leveraging DigiLocker-an electronic storage platform by the Ministry of Electronics and Information Technology (MeitY)-enterprises can now furnish their URCs in a digital format, reducing administrative overheads and ensuring swift verification.
According to the notification, documents stored in DigiLocker are legally recognised under the Information Technology Act, 2000, and are considered equivalent to original documents.
This new measure also facilitates real-time verification of enterprise credentials, thereby bolstering compliance and monitoring efforts by enforcement authorities.
The move is expected to address long-standing challenges faced by MSMEs, including delays in documentation and manual verification processes.
Moreover, this aligns with India's broader agenda of fostering a digital-first ecosystem and empowering small businesses.
For the banking sector, the shift promises to simplify credit assessments under RBI's PSL guidelines. By integrating Udyam Registration Portal and DigiLocker systems via APIs, banks and financial institutions can efficiently verify MSME credentials, ensuring smoother credit disbursal.
While the digital transition marks a milestone for India's MSME sector, stakeholders are advised to ensure that their URCs are updated on DigiLocker for seamless integration.
This policy development underscores the government's commitment to supporting MSMEs as a critical pillar of economic growth, while also pushing for greater adoption of digital infrastructure across sectors.
(KNN Bureau)
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