Retail and Wholesale Trades are Now Included in the MSME category

06 July 2021 Current Affairs:Retail and wholesale traders have been classified as MSME (Micro, Small, and Medium Enterprises) by the government.

♦ The MSME sector includes the industrial and service sectors but not the agriculture sector.
♦ Despite the fact that the retail and wholesale trades are all part of the Services sector, they were not considered MSMEs. 
♦ Because MSMEs are included in the Priority Sector Lending (PSL) Guidelines, Retail and Wholesale trade will now be able to obtain loans under PSL.
♦ Priority Sector Lending is an important role assigned by the RBI to banks in which a specified portion of bank lending is directed toward a few specific sectors.
♦ In the absence of this special dispensation, these sectors of the economy with high social returns and a high need for inclusive development may not receive timely and adequate credit.
♦ Today, banks lend nearly 40 percent of their adjusted net bank credit to the priority sector.

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