India Post–SIDBI MoU to Verify Informal Micro Enterprises

Strengthening the Informal Enterprise Ecosystem

In a major initiative to deepen formalisation and improve credit access for small businesses, the Department of Posts under the Ministry of Communications and the Small Industries Development Bank of India (SIDBI) have signed a Memorandum of Understanding to conduct Contact Point Verification (CPV) of informal micro enterprises registered on the Udyam Assist Platform . The collaboration aims to enhance data reliability and enable smoother linkage of informal enterprises with institutional finance.

Framework of Institutional Collaboration

The MoU was signed at Dak Bhawan, New Delhi , creating a structured mechanism for cooperation between the two institutions. It formalises joint responsibilities related to enterprise verification, validation of business information, and facilitation of credit enablement initiatives targeting the informal micro-enterprise segment.

Leveraging India Post’s Nationwide Network

India Post will play a pivotal role by utilising its vast grassroots presence of over 1.64 lakh post offices and trained field personnel. With its proven experience in last-mile service delivery, financial inclusion and digital governance, India Post will conduct physical, on-ground verification of enterprises registered on the Udyam Assist Platform, especially in remote and underserved areas.

SIDBI and the Udyam Assist Platform

SIDBI, the apex financial institution for MSME development, is responsible for the design and management of the Udyam Assist Platform. The platform focuses on bringing informal micro enterprises into the formal ecosystem by ensuring authentic data, enterprise visibility and improved eligibility for formal credit. To support this objective, SIDBI has instituted a structured CPV mechanism to validate enterprise details.

Operational Mechanism and Validity

Under the MoU, India Post officials will verify demographic and business details using geo-tagged evidence through a dedicated CPV mobile application developed by SIDBI. The application allows real-time data capture and secure submission. SIDBI will provide system access, backend infrastructure, training and operational guidelines. The MoU is valid for two years from December 31, 2025 to December 30, 2027 , with provisions for extension, data security and payment mechanisms.

Important Facts for Exams

• SIDBI is the apex institution for MSME financing and development

• Udyam Assist Platform targets informal micro enterprises

• India Post operates the world’s largest postal network

• Contact Point Verification improves data integrity and credit access