The MSME sector is considered the backbone of the Indian economy, contributing to approximately 30% of the GDP and 48% of total exports. The government purchases products directly or indirectly from these firms under the Public Procurement Policy.
With such a vast number of companies operating in the country, keeping track of these firms and their products can become a tedious task. MSME Databank was launched on 11th August 2016 to solve this underlying issue.
The MSME Databank is a comprehensive database of all operating MSMEs in the country. This database contains all the information and requirements related to mergers and acquisitions, transfer of technologies, and import-export machinery within the business.
With this information, the ministry of MSME will have census data on this online portal. This will also enable the government to monitor various loan schemes and policies directed for the MSMEs, like the Rs.15,700 crore allocated in the Union Budget 2021, directly to small business owners.
All MSMEs in the country must provide information about their business to the government through an MSME databank registration. Udyog Aadhaar Memorandum is a single-page registration form that companies can use to self-certify the existence of their business identity. Having a UAN (essentially Aadhaar for companies) saves a business from the procedural hassle associated with an MSME registration.
To obtain UAN, business-owners will need to submit basic details of their business, bank details, owner’s bank information, and other relevant information. The owner will receive his/her unique 12-digit UAN on their registered email address.
According to the MSME Development (Furnishing of Information) Rules, 2009, all micro, small, and medium enterprises are mandated to provide details of their business to the Government of India.
To be eligible for MSME data bank registration, businesses essentially have to comply with two simple prerequisites, i.e., Udyog Aadhaar Number and Permanent Account Number.
For North East regions, submitting the mobile number registered with UAN is mandatory.
In the case of corporate companies and LLPs, a business owner must mandatorily submit the PAN of his/her company or LLP.
For single owners, the PAN of a sole proprietor may be entered as well.
The MSME databank is essentially an extensive database of MSMEs that are operational in India. It is mandatory for MSMEs to update information surrounding their business on the web-portal. The Government of India formulated this database to support procurement agencies to purchase directly from such MSMEs under the Public Procurement Policy. Thus, registered MSMEs will become instantly eligible to become official suppliers of the government.
Meanwhile, the government will also be able to shortlist MSME units for its procurement requirements using this database.
This web-based secure database is accessible 24*7 and any information about a concerned MSME can be updated as and when required. This portal also comes with additional benefits such as a real-time MIS dashboard for data monitoring and updating, and mapping and classification of products using real-time HS/NPC codes.
Businesses that clear MSME data bank registration eligibility can quickly register on the online portal by simply filling up a registration form. Business owners can follow these steps for the same:
After the submission an MSME Data Bank verification mail will be received on the applicant's mail ID that was used to submit. Once verification is completed, one can login to the MSME Databank portal.
The MSME databank is a massive step towards the Digital India campaign, as small business entrepreneurs can easily avail of government benefits and policies directly without visiting any authorised departments. Moreover, MSMEs can get help regarding various policies, such as financial support and advanced technical assistance.
Get up to Rs.45 lakh to upgrade equipment | Pay only interest as EMIKNOW MORE
Convert your existing loan | Pay lower EMIs by up to 45%*KNOW MORE
Get up to Rs.45 lakh to manage operations | Flexible tenor optionsKNOW MORE
Get funds up to Rs.45 lakh | Minimal documentationKNOW MORE