UDYAM Verification

UDYAM Verification: The Unseen hindrance in MSME Growth and How API Integration Can Fix It

India’s Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the nation’s economy. At FinAGG, we have always been at the forefront of democratising access to working capital for these vital businesses. However, a common hindrance MSMEs face while accessing credit is the current UDYAM verification process.

While essential for validating their status, the system often slows down the flow of credit due to inefficiencies in the verification process. Rather than placing the entire burden on a centralised portal, we believe the solution lies in modernising the system through API-based verification. With an API, banks and financial institutions could seamlessly access UDYAM data, ensuring faster verification and quicker credit disbursement for MSMEs.

Why API Integration is the Solution:

    1. Real-Time Verification: An API-enabled system would allow businesses and
      financial institutions to verify UDYAM details instantly, without waiting for manual
      approvals or facing website downtime.
    2. Scalability: APIs would enable the system to handle thousands of concurrent requests, ensuring that no MSME is turned away due to technical limitations.
    3. Faster Credit Access: With seamless verification through API, MSMEs can gain quicker access to working capital, enabling them to take advantage of market opportunities and expand their operations.
    4. Digital Public Goods Integration: UDYAM API could further align with other government-led initiatives such as ULI, OCEN, and ONDC, ensuring that MSMEs can unlock financial opportunities without hurdles.
      For example, consider how OCEN (Open Credit Enablement Network) allows any business to embed credit products directly within their service offerings. Imagine the power of combining OCEN with real-time UDYAM verification. The possibilities for smoother, faster, and more inclusive financial services would be endless.

A Call to Action for UDYAM Improvement

At FinAGG, we request the Ministry of Micro, Small, and Medium Enterprises, and Ministry of Finance to urgently address this issue by enabling UDYAM verification via API. We believe that once integrated, the benefits will be transformational not only for MSMEs but for India’s economic growth.

By taking this crucial step, the government would further solidify the foundational frameworks of Digital India and Financial Inclusion, empowering millions of businesses to access the financial support they need. The potential to significantly enhance India’s GDP and overall global competitiveness lies in these seemingly small yet impactful digital improvements.

Looking Ahead: Pioneering Future Solutions


As we raise this issue today, we hope to see a future where the government listens, adapts, and innovates. Should the UDYAM verification process improve through enhanced technology or API integration, it will serve as a testament to how proactive measures—like this blog and FinAGG’s CEO Mr. Nipun Kholi’s recent statements on LinkedIn —can spark change.

Our commitment will always be to MSMEs, ensuring their voices are heard and their needs addressed. We remain hopeful that the necessary changes will be implemented soon, ensuring that UDYAM verification becomes the seamless and efficient process it was intended to be.

In the meantime, we’ll continue to innovate, adapt, and provide solutions that simplify financial access for India’s MSMEs—because their success is India’s success.


Final Thought: If the government acts on these suggestions and introduces API-based verification and other technological improvements, FinAGG will be proudly happy to work with stakeholders towards making credit access faster and simpler for MSMEs. Let’s unlock the full potential of India’s growth together!

Source : https://www.linkedin.com/posts/nipunkohli_for-existing-enterprises-activity-7240775867759534080-cLC9/

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