BTL 870 - Udyam Assist Certificate

 

The Banking Tutor’s Lessons

BTL 870                                                                                15-02-2026

Udyam Assist Certificate  

The Udyam Assist Certificate is a digital document issued to Informal Micro Enterprises (IMEs) lacking GST numbers, enabling them to register via the Udyam Assist Platform (UAP).

Launched on January 11, 2023, by the Ministry of MSME and implemented by SIDBI, this certificate allows unregistered, small businesses to access Priority Sector Lending (PSL) benefits.

Key Aspects of the Udyam Assist Certificate:

Purpose: Formalizes informal micro-businesses (e.g., street vendors, artisans, small traders) without requiring GST registration.

Validity: Treated equally to a regular Udyam Registration Certificate for availing PSL benefits, according to RBI guidelines.

Process: Registration is assisted by Designated Agencies (DAs) like banks, NBFCs, or MFIs who use Aadhaar and PAN data to generate a Unique Registration Number (URN).

Application: Registered IMEs can download their certificates directly from the UAP portal.

IMEs with an Udyam Assist Certificate shall be treated as micro enterprises for the purpose of PSL classification.

Sekhar Pariti

+91 9440641014

DBC 2346 - Insider Trading

 

The Banking Tutor 

Daily Banking Concept -  2346 

Insider Trading 

Insider trading is the buying or selling of a company's securities by individuals who possess material, non-public information about that company.

DBC 2345 - Market Manipulation

 

The Banking Tutor 

Daily Banking Concept -  2345 

Market Manipulation 

Market manipulation is the intentional and illegal act of artificially influencing the supply or demand of a security to deceive investors and profit from the resulting price distortion.

DBC 2344 - Materiality Threshold

 

The Banking Tutor 

Daily Banking Concept -  2344 

Materiality Threshold 

A materiality threshold is a benchmark used in auditing and accounting to decide the significance of errors or omissions in financial statements, determining if they are large enough to influence users' economic decisions, guiding auditors to focus on important discrepancies rather than trivial ones, often calculated as a percentage of metrics like earnings or assets. It acts as a "filter" to ensure transparency and relevance, with amounts exceeding the threshold deemed "material" and requiring correction, while smaller amounts are considered insignificant.

BTL 869 - Resilient Financial System

 

The Banking Tutor’s Lessons

BTL 869                                                                               12-02-2026

Resilient Financial System  

At a broader level, resilience is defined as the ability of a system, community or society exposed to hazards to resist, absorb, accommodate to and recover from the effects of a hazard in a timely and efficient manner, including through the preservation and restoration of its essential basic structures and functions. 

In the context of financial system, a resilient financial system is one which is able to absorb the impact of endogenous shocks it is exposed to, rebound quickly to the original condition or adapt to new environment, and continue to perform its role of providing financial services. This definition of resilient financial system is different from a stable financial system. A stable financial system is one which is able to absorb shocks, whereas a resilient financial system will be able to adapt and reconfigure itself in response to a shock, in addition to absorbing the shocks. 

As such, our efforts should be focussed on building a financial system which is not just stable, but resilient, as the type, source, magnitude and frequency of shocks are turning out to be highly unpredictable and non-measurable to a significant degree. Accordingly, focus of regulation and supervision of financial system should be to make sure that financial system as well as individual financial institutions are not just able to absorb the shocks, but are able to adapt to the changed circumstances. 

The 3As of Resilience are: Anticipatory Capacity, Absorptive Capacity and Adaptive Capacity

Anticipatory Capacity could be thought of the ability of the financial system and its constituents to identify and measure emerging risks as early as possible and mitigate the risks by taking corrective actions. 

Absorptive Capacity is the ability to withstand the losses which may arise due to shocks which cannot be mitigated or avoided. 

Adaptive Capacity helps in adjust to the new realities, be it changed regulatory/economic conditions or a new competitive landscape. 

Sekhar Pariti

+91 9440641014

DBC 2343 - Holacracy

 

The Banking Tutor 

Daily Banking Concept -  2343 

Holacracy 

Holacracy is a system of corporate governance whereby members of a team or business form distinct, autonomous, yet symbiotic, teams to accomplish tasks and company goals. The concept of a corporate hierarchy is discarded in favor of a fluid organizational structure where employees have the ability to make key decisions within their own area of authority.

DBC 2342 - Junior Capital Pool

 

The Banking Tutor 

Daily Banking Concept -  2342 

Junior Capital Pool 

A junior capital pool (JCP) is a corporate capital structure that allows early-stage startups to sell shares in the company before actually establishing a line of business. This form of company financing is a Canadian invention and is permitted only in Canada.