PhonePe partners with Sidbi to boost Udyam Assist registration

Post by :

Photo:Reuters

India’s digital payment leader PhonePe has entered into an important partnership with the Small Industries Development Bank of India (Sidbi) to support millions of micro businesses across the country. This new agreement will allow informal micro enterprises (IMEs) and small shopkeepers to complete their Udyam Assist registration fully online using the PhonePe Business app.

The initiative was officially announced in New Delhi in the presence of Union Minister for Micro, Small and Medium Enterprises, Jitan Ram Manjhi. The partnership is part of the government’s larger vision to formalize India’s massive base of informal businesses and bring them into the mainstream financial system.

What is Udyam Assist Registration?

Udyam Assist registration is a digital certificate given to very small and informal businesses that are not yet officially registered under GST. Once registered, these businesses are recognized as micro enterprises and can get access to:

* Government subsidy schemes and welfare programs

* Easier loans and credit facilities from banks and financial institutions

* Insurance and support under MSME schemes

* The digital payments and e-commerce ecosystem

This step is crucial because most of India’s small businesses still operate informally without registration, making it difficult for them to grow or get financial help.

How will PhonePe help?

PhonePe, which already has a large base of merchants using its platform for digital payments, will now integrate Udyam Assist registration into its PhonePe Business app. This means a shopkeeper or a street vendor who is already using PhonePe QR codes can now directly apply for Udyam registration through the app in just a few steps.

PhonePe Pending CEO, Hemant Gala, explained that the goal is not only to provide registration but to make the entire process simple, quick, and user-friendly. “This collaboration will help small businesses unlock government schemes, credit facilities, and other benefits. Our digital solution ensures that registration becomes a smooth journey for every micro entrepreneur,” he said.

Sidbi’s role and the Udyam Assist Platform

Sidbi launched the Udyam Assist Platform (UAP) in January 2023 as part of the Ministry of MSME’s formalisation project. The platform was specially designed to register non-GST informal businesses.

According to Sidbi officials, the platform has already helped more than 2.75 crore small businesses receive Udyam Assist Certificates in the past two years. This makes it one of the biggest formalisation drives in India. YM Kumari, Chief General Manager at Sidbi, said that the platform has become a major driver in bringing small, unregistered enterprises into the organized sector.

Why is this important for India’s economy?

India has millions of micro enterprises — from tea sellers and small grocery shops to small workshops and service providers. Many of them do not have GST registration, proper paperwork, or financial history. As a result, they remain outside the formal banking and credit system.

By linking with PhonePe, which already has a strong presence in towns and villages, Sidbi can reach these small entrepreneurs faster. This will:

* Give them identity as recognized businesses

* Help them access loans at lower interest rates

* Improve their chances to expand operations

* Connect them to digital marketplaces and online trade

* Strengthen India’s goal of building a cashless, digital economy

Future benefits for merchants

Merchants will soon be able to register directly from the PhonePe Business app, without visiting government offices or filling complex forms. Once they get the Udyam Assist Certificate, they can:

* Apply for bank loans easily

* Join government welfare programs for small businesses

* Gain trust among customers and partners by being formally registered

* Expand their digital payment usage through PhonePe’s network

This is expected to encourage more small business owners to step into the formal sector and benefit from India’s growing economy.

Larger vision

The government’s goal is to formalize India’s huge informal sector and give every small business a chance to grow. With digital partners like PhonePe, this dream becomes easier to achieve. By combining PhonePe’s technology and Sidbi’s support system, the Udyam Assist initiative will play a big role in empowering India’s entrepreneurs.

Udyam Assist registration