MSME Classification Validity Extended to March 31, 2022
Current · Source: Reserve Bank of India · RBI/2021-2022/161 · issued 18 Feb 2022 · ~2 min read
Quick answerRBI extends validity of old MSME registration documents (EM Part II, UAMs, and related classification documents) until March 31, 2022, giving banks more time to transition borrowers to the new MSME definition without disruption.
The rule, in the simplest words
Old MSME registration papers like Entrepreneurs Memorandum Part II and Udyog Aadhaar Memorandum that were issued up to June 30, 2020 can still be used until March 31, 2022.
Classification documents that came from the March 2017 circular are also good until March 31, 2022.
Banks may keep using these old documents for giving loans and for reporting, so they don’t have to ask borrowers for new paperwork right now.
Banks should update their internal rules, tell branch staff about the extension, and plan to move to the new MSME definition after March 31, 2022.
How it plays out — a real example
Rohit, a senior credit officer in Indore, receives a loan request from a small textile unit that shows a Udyog Aadhaar Memorandum dated May 2020. Remembering the RBI extension, he knows the document is still valid until March 31, 2022, so he happily processes the loan and records the compliance note, assuring the borrower that no new registration is needed right now.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2021-2022/161
FIDD.MSME & NFS.BC.No.16/06.02.31/2021-22
February 18, 2022
The Chairman/ Managing Director/Chief Executive Officer
All Commercial Banks
(including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/
District Central Co-operative Banks /All-India Financial Institutions/
All Non-Banking Financial Companies
Dear Sir/Madam,
New Definition of Micro, Small and Medium Enterprises - Clarification
Please refer to the circular FIDD.MSME & NFS.BC.No.12/06.02.31/2021-22 dated June 25, 2021 on ‘New Definition of Micro, Small and Medium Enterprises’.
2. In this connection, we inform that Government of India, vide their Gazette Notification S.O. 278(E) dated January 19, 2022 , has notified amendments in the paragraph (7) sub-paragraph (3) in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated June 26, 2020 , published in the Gazette of India.
3. In view of the above amendment, paragraph 3 of the said circular would stand modified as under:
“The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till June 30, 2020 shall remain valid till March 31, 2022.”
4. Further, it is clarified that the validity of documents obtained in terms of O.M. No.12(4)/ 2017-SME dated March 8, 2017 ( RBI Circular FIDD.MSME & NFS.BC.No.10/06.02.31/2017-18 dated July 13, 2017 ), for classification of MSMEs upto June 30, 2020, are also valid upto March 31, 2022.
5. All other provisions of the circular remain unchanged.
Yours faithfully
(Sonali Sen Gupta)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-2022/161 · issued 18 Feb 2022. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the extension to branch staff and credit teams to avoid rejecting valid old registrations.
💻 IT / Systems
Update internal systems and circulars to reflect the extended validity of old MSME documents until March 31, 2022.
📜 Compliance
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.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (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), your first concrete step on “MSME Classification Validity Extended to March 31, 2022” is: “Update internal systems and circulars to reflect the extended validity of old MSME documents until March 31, 2022.” (RBI issued this 18 Feb 2022).
Circular: RBI/2021-2022/161 -- MSME Classification Validity Extended to March 31, 2022
Issued: 18 Feb 2022
Action required: Update internal systems and circulars to reflect the extended validity of old MSME documents until March 31, 2022.
Action required: Communicate the extension to branch staff and credit teams to avoid rejecting valid old registrations.
Action required: Plan for a smooth transition to the new MSME definition post-March 31, 2022, including borrower outreach.
Action required: Review existing MSME loan portfolios to identify accounts still using old registrations and prepare for reclassification.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12233&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.