Question
The Udyam Assist Portal (UAP) was launched to bring
Informal Micro Enterprises (IMEs) into the formal system. What is the significance of the UAP certificate issued to such enterprises?Solution
The Udyam Assist Portal (UAP) was developed to provide formal recognition to Informal Micro Enterprises (IMEs)that are often left out of the MSME ecosystem due to lack of GST registration or formal documentation. ⢠The UAP certificate issued through this portal acts as an equivalent to the Udyam Registration Certificate. ⢠With this recognition, IMEs are treated as micro enterprises for Priority Sector Lending (PSL) purposes, thereby enabling them to access institutional credit and financial inclusion benefits. ⢠This initiative is a crucial step in integrating the informal sector into the formal financial system.  Correct Answer: It allows IMEs to be treated as micro enterprises for PSL benefits (Option 2)
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