What changed
The Government of India amended its June 2020 MSME notification via Gazette S.O. 278(E) on January 19, 2022. Consequently, RBI modified its June 25, 2021 circular: the validity of Entrepreneurs Memorandum Part II and Udyog Aadhaar Memoranda obtained till June 30, 2020 is now extended to March 31, 2022. Additionally, classification documents under the March 2017 OM remain valid until the same date.
What it means for you
Banks and lenders can continue using existing MSME classification documents for loan processing and reporting without forcing immediate reclassification. This extension reduces compliance pressure and gives time to update systems for the new definition. It also ensures continuity in priority sector lending and MSME credit flow without sudden documentation gaps.
What you must do
- Update internal systems and circulars to reflect the extended validity of old MSME documents until March 31, 2022.
- Communicate the extension to branch staff and credit teams to avoid rejecting valid old registrations.
- Plan for a smooth transition to the new MSME definition post-March 31, 2022, including borrower outreach.
- Review existing MSME loan portfolios to identify accounts still using old registrations and prepare for reclassification.
Who it affects
All commercial banks including SFBs, LABs, and RRBs, Primary Urban Co-operative Banks, State Co-operative Banks, DCCBs, All-India Financial Institutions, Non-Banking Financial Companies (NBFCs), MSME borrowers with old EM Part II or UAM registrations
What documents are covered by this extension?
The extension covers Entrepreneurs Memorandum Part II, Udyog Aadhaar Memoranda obtained till June 30, 2020, and classification documents under the March 2017 OM. All remain valid for MSME classification until March 31, 2022.
Does this change any other MSME lending norms?
No. Only the validity period of old registration documents is extended. All other provisions of the June 2021 circular on the new MSME definition remain unchanged.
What should banks do if a borrower's old UAM expires before March 31, 2022?
Banks can continue to accept these documents as valid for classification until March 31, 2022. No immediate reclassification is needed, but banks should encourage borrowers to register under the new definition before the deadline.