What changed
Retail and wholesale trade activities under NIC codes 45, 46, and 47 are now classified as MSMEs for priority sector lending purposes. Enterprises with existing Udyog Aadhaar Memorandums under these codes can migrate to the Udyam Registration Portal or register afresh.
What it means for you
Banks can now classify loans to retail and wholesale traders as priority sector advances, helping meet lending targets. This expands the MSME credit pool and formalizes a large segment of the trading economy, but lenders must verify NIC code compliance and Udyam registration.
What you must do
- Update internal MSME classification systems to include NIC codes 45, 46, and 47 for priority sector lending.
- Train credit officers to accept Udyam registrations from retail and wholesale trade enterprises.
- Review existing loan portfolios to reclassify eligible retail/wholesale trade accounts as priority sector MSMEs.
- Communicate the change to branch managers and relationship teams for customer outreach.
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, Retail and wholesale trade enterprises
Which NIC codes are covered under this change?
NIC codes 45 (wholesale/retail trade and repair of motor vehicles), 46 (wholesale trade except motor vehicles), and 47 (retail trade except motor vehicles) are now eligible for MSME classification for priority sector lending.
Can existing Udyog Aadhaar holders under these NIC codes migrate to Udyam?
Yes, enterprises with Udyog Aadhaar Memorandums under NIC codes 45, 46, and 47 can migrate to the Udyam Registration Portal or file a fresh registration.
Is this change permanent or temporary?
The circular states this is for the limited purpose of priority sector lending, but no end date is specified in the source. Banks should treat it as an ongoing classification until further notice.