Can it not be deemed as an election enticement as the government has returned to its previous stance what was wiped out in June 2017? The retail and the wholesale traders are very sagely once again given the MSME category. Just after a gap of four years, the small retailers and the wholesalers are ably enabled to be a part of the enterprise which was notified fifteen years ago through the 2006 Act. Was it not so?
What has led the government to extend a helping hand to them during the terrible consequence of pervading pandemics? The wholesale and the retail traders will now be capable of benefiting from the fresh privileges allowed to them currently. Whatever is felt about this benevolence may be an opinion. However, elections for upcoming assembly polls in various states are not too far. The government could aim at two or more goals with a single arrow. Why has it reverted after four long years? Nothing is done without a benefit upon the living planet, however, benevolent one may stand to be. As many as 2.5 crore retail and wholesale traders would further applaud the generous government’s promising deed.
Thus, the retailers and the wholesale traders can now avail the priority sector lending as loans given to the MSME sector that come under priority sector lending apart from agriculture. The RBI’s guidelines state commercial banks should extend 40 percent of the total lending towards the priority sector while for the regional rural banks and small finance banks, the percent target has been set at 75 percent of the total lending.
Now the traders can reap the benefit of a free, paperless online and instant Udyam registration portal. They will, within the ambit of MSMEs, not only be able to self-certify their existence by registering on the government portal but also remain eligible for interest rate subsidy on bank loans, an exemption under direct tax laws, and concession in electricity bills among others.