Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q121: Which of the following statements regarding the MSME Registration (Udyam) Procedure is INCORRECT?

A
Udyam Registration is a fully online, paperless, and self-declaration based process.
B
It is mandatory to link the GSTIN and PAN to the Udyam Registration for all enterprises (subject to specific exemptions).
C
An enterprise can file multiple Udyam Registrations for different manufacturing activities under the same PAN.
D
No fee is payable for filing Udyam Registration.
✅ Correct Answer: C
Option C is the incorrect statement.
Under the Udyam Registration guidelines, an enterprise shall file only one Udyam Registration.
Any number of activities (whether manufacturing or service) can be added to that single registration.
Multiple Udyam IDs cannot be generated on the same PAN.
The process is fully online, free of cost, and paperless, based on self-declaration.
However, the system verifies PAN and GSTIN from the backend (Income Tax and GSTN systems). The classification (Micro/Small/Medium) is updated automatically based on the latest tax and GST returns linked to the PAN.