Current · Source: Reserve Bank of India · RBI/2021-2022/63 · issued 25 Jun 2021 · ~1 min read
Quick answerRBI extends validity of MSME registrations (EM Part II/Udyog Aadhaar) obtained till June 30, 2020, to December 31, 2021. No other changes to the MSME definition circular.
The rule, in the simplest words
If you got your MSME registration (a paper that says you are a small business) before July 1, 2020, it is still good until December 31, 2021.
Banks can keep using these old registrations for giving loans and sorting businesses into categories without asking for new papers right away.
This rule change makes less paperwork for both small businesses and banks during the switch to a new definition of MSME.
How it plays out — a real example
A branch operations officer in Indore is reviewing a loan application from a small manufacturing unit. The borrower's Udyog Aadhaar (a registration number for small businesses) was issued in March 2020. Thanks to the RBI extension, the officer knows this registration is valid until December 31, 2021, so she can approve the loan without asking the borrower to re-register, saving time and hassle for everyone.
What changed
The Government of India amended its June 26, 2020 notification via Gazette S.O. 2347(E) dated June 16, 2021. Consequently, RBI modified its August 21, 2020 circular: existing EM Part II and UAMs obtained till June 30, 2020 are now valid until December 31, 2021, instead of the earlier deadline.
What it means for you
Banks and lenders can continue to rely on existing MSME registrations for classification and lending without requiring immediate re-registration. This extension reduces compliance burden for both MSMEs and financial institutions during the transition to the new definition.
What you must do
Update internal systems to reflect the extended validity of EM Part II and UAMs till December 31, 2021.
Communicate the extension to branches and credit teams to avoid rejecting valid registrations.
Monitor for any further amendments to the MSME definition or registration process.
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, All Non-Banking Financial Companies, MSME borrowers with EM Part II or UAM obtained before July 1, 2020
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular change the MSME definition itself?
No. Only the validity period of old registrations (EM Part II and UAMs) is extended to December 31, 2021. All other provisions of the August 21, 2020 circular remain unchanged.
What if an MSME has a registration obtained after June 30, 2020?
This extension applies only to registrations obtained till June 30, 2020. Registrations obtained after that date are governed by the new definition and are not affected by this circular.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “Please refer to the circular FIDD.MSME & NFS.BC.No.12/06.02.31/2021-22 dated June 25, 2021”
📜 Read the original circular — full text as issued by RBI
RBI/2021-2022/63
FIDD.MSME & NFS.BC.No.12/06.02.31/2021-22
June 25, 2021
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
Please refer to the circular FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 dated August 21, 2020 on ‘New Definition of Micro, Small and Medium Enterprises –clarifications’.
2. In this connection, we inform that Government of India, vide their Gazette Notification S.O. 2347(E) dated June 16, 2021 , has notified amendments in 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 2.2 (i) of RBI circular dated August 21, 2020 stands 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 December 31, 2021”.
4. All other provisions of the circular remain unchanged.
Yours faithfully
(Kaya Tripathi)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-2022/63 · issued 25 Jun 2021. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the extension to branches and credit teams to avoid rejecting valid registrations.
💻 IT / Systems
Update internal systems to reflect the extended validity of EM Part II and UAMs till December 31, 2021.
📜 Compliance
Monitor for any further amendments to the MSME definition or registration process.
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, All Non-Banking Financial Companies, MSME borrowers with EM Part II or UAM obtained before July 1, 2020), your first concrete step on “MSME Registration Validity Extended to Dec 2021” is: “Update internal systems to reflect the extended validity of EM Part II and UAMs till December 31, 2021.” (RBI issued this 25 Jun 2021).
Circular: RBI/2021-2022/63 -- MSME Registration Validity Extended to Dec 2021
Issued: 25 Jun 2021
Action required: Update internal systems to reflect the extended validity of EM Part II and UAMs till December 31, 2021.
Action required: Communicate the extension to branches and credit teams to avoid rejecting valid registrations.
Action required: Monitor for any further amendments to the MSME definition or registration process.
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=12122&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.
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