Principles & Practices of Banking - RBI Circulars - MSME Definition - June 25, 2021

Sep 2, 2026

A compilation of Reserve Bank of India circulars updates key banking policy areas, including the newly defined criteria for Micro, Small and Medium Enterprises and related clarifications. It documents amendments issued via Gazette notifications and the resulting modification to existing Entrepreneurs Memorandum (EM) and Udyog Aadhaar Memorandum (UAM) validity for MSMEs. The collection also covers revised prudential borrowing limits for call, notice and term money markets and changes to reporting for the Liberalised Remittance Scheme through XBRL.

LanguageEnglish

CategoryLetters

FormatDOCX

Pages107

Reading Time37 min

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Principles & Practices of Banking

New Definition of Micro, Small and Medium Enterprises

Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021

Liberalised Remittance Scheme for Resident Individuals – Reporting

Bharat Bill Payment System – Addition of Biller Category

Principles & Practices of Banking 1. New Definition of Micro, Small and Medium Enterprises 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 BanksAll-India Financial Institutions All Non-Banking Financial Companies Please refer to the HYPERLINK "https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11951&Mode=0" \t "_blank" 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 HYPERLINK "https://rbidocs.rbi.org.in/rdocs/content/pdfs/MoMSME16062021.pdf" \t "_blank" 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 HYPERLINK "https://rbidocs.rbi.org.in/rdocs/content/pdfs/IndianGazzate02072020.pdf" \t "_blank" 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 HYPERLINK "https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11951&Mode=0" \t "_blank" 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. 2. Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021 RBI/2021-22/61FMRD.DIRD.06/14.01.001/2021-22 June 25, 2021 All Eligible Market Participants Please refer to the Master Direction – Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021 dated April 01, 2021 (hereinafter referred as ‘Master Directions’). 2. On a review based on representations received, the prudential borrowing limits for transactions in Call, Notice and Term Money Markets have been revised. Accordingly, in Part 4 (b) of the Master Directions, Table 1 is being revised as under: 3. These Directions have been issued by RBI in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 and of all the powers enabling it in this behalf. 4. These changes shall be applicable with immediate effect. HYPERLINK "https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12120&Mode=0" https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12120&Mode=0 3. Liberalised Remittance Scheme for Resident Individuals – Reporting RBI/2021-22/56 A. P. (DIR Series) Circular No. 07 June 17, 2021 All Category - I Authorised Dealer Banks Attention of all Authorised Dealer Category - I (AD Category - I) banks is invited to HYPERLINK "https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7992&Mode=0" \t "_blank" A. P. (DIR Series) Circular No. 106 dated May 23, 2013, in terms of which, AD Category -I banks were required to upload the data in respect of number of applications received and the total amount remitted under the Liberalised Remittance Scheme (the Scheme) on Online Return Filing System (ORFS). 2. It has now been decided to collect this information through XBRL system instead of the ORFS. 3. Accordingly, AD Category – I banks shall upload the requisite information on XBRL system on or before the fifth of the succeeding month from July 01, 2021 onwards. The XBRL site can be accessed through URL HYPERLINK "https://xbrl.rbi.org.in/orfsxbrl" \t "_blank" https://xbrl.rbi.org.in/orfsxbrl. User ids are being issued separately. In case no data is to be furnished, AD banks shall upload ‘nil’ figures. 4. The directions contained in this circular have been issued under Sections 10(4

FAQs

What key update is made to the definition of MSMEs?

The RBI circulation references Government of India amendments effective through Gazette notifications and clarifications tied to the new MSME definition.

How are the Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) treated after the amendment?

EM Part II and UAMs obtained up to June 30, 2020 remain valid until December 31, 2021.

What changes occur for reporting under the Liberalised Remittance Scheme for resident individuals?

Required information is to be collected through the XBRL system rather than the ORFS, with uploads by the fifth of the succeeding month starting July 1, 2021.

Sep 2, 2026

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