India Post, SIDBI Sign MoU for Udyam Assist Verification

In a significant step to strengthen India’s informal enterprise ecosystem, the Department of Posts under the Ministry of Communications and the Small Industries Development Bank of India have signed a Memorandum of Understanding to undertake Contact Point Verification of Informal Micro Enterprises registered on the Udyam Assist Platform. The collaboration aims to improve data integrity, formalisation and access to institutional credit for small businesses.

Institutional Collaboration Framework

The MoU was signed at Dak Bhawan, New Delhi, establishing a structured framework for cooperation between “Department of Posts” and “Small Industries Development Bank of India”. The agreement formalises joint efforts to support verification, validation and credit enablement initiatives for informal micro enterprises across the country.

Leveraging India Post’s Last-Mile Reach

India Post brings to the partnership its extensive nationwide network of over 1.64 lakh post offices and a trained field workforce. With long-standing experience in citizen-centric and business-to-government services, India Post has been a key enabler of financial inclusion, digital delivery and grassroots-level service outreach. Under the MoU, it will conduct on-ground verification of enterprises registered on the Udyam Assist Platform.

Role of SIDBI and Udyam Assist Platform

SIDBI, the principal financial institution for the promotion, financing and development of the MSME sector, is the designated agency for developing and administering the Udyam Assist Platform. The platform seeks to strengthen informal micro enterprises through formalisation, reliable data validation and improved access to institutional finance. To this end, SIDBI is instituting a robust CPV mechanism to ensure accuracy and authenticity of enterprise-level information.

Imporatnt Facts for Exams

• SIDBI is the principal financial institution for MSME development in India.
• Udyam Assist Platform focuses on formalising informal micro enterprises.
• India Post operates the world’s largest postal network.
• Contact Point Verification supports data integrity and credit access.

Operational Details and Validity of MoU

Under the agreement, the Department of Posts will verify demographic details, business particulars and locations of registered enterprises using geo-tagged evidence. Verification will be carried out through a dedicated CPV mobile application developed by SIDBI, enabling real-time data capture and secure submission of reports. SIDBI will provide system access, backend infrastructure, operational guidelines and training. The MoU will remain valid for two years, from December 31, 2025 to December 30, 2027, with provisions for extension, data confidentiality, information security, GST compliance and structured payment mechanisms.