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    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?
    A It upgrades IMEs into large enterprises for government schemes. Correct Answer Incorrect Answer
    B It allows IMEs to be treated as micro enterprises for Priority Sector Lending (PSL) benefits. Correct Answer Incorrect Answer
    C It automatically registers IMEs as export-oriented units. Correct Answer Incorrect Answer
    D It certifies IMEs exclusively for participation in international trade. Correct Answer Incorrect Answer
    E It converts IMEs into small enterprises for easier access to subsidies. Correct Answer Incorrect Answer

    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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