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

Q85: Which of the following statements regarding the Udyam Assist Platform (UAP) is INCORRECT?

A
It was launched to bring Informal Micro Enterprises (IMEs) into the formal ambit.
B
UAP allows IMEs to generate a Udyam Assist Certificate without a GST Number.
C
Enterprises registered on UAP are entitled to all benefits under the MSMED Act, 2006, including protection against delayed payments.
D
IMEs registered on UAP are eligible for Priority Sector Lending (PSL) classification.
✅ Correct Answer: C
Option C is the incorrect statement.
While the Udyam Assist Platform (UAP) formalizes Informal Micro Enterprises (IMEs), the benefits are currently restricted to Priority Sector Lending (PSL) classification.
They do NOT automatically get the statutory protection against delayed payments (under Sections 15-17 of the MSMED Act) or other benefits available to fully Udyam-registered firms that have a valid GSTIN.
UAP relies on data from the Ministry of Labour (e-Shram portal) or other agencies to give a "certificate of existence" to informal units that lack GST, primarily to help them access bank loans under PSL.