India Post, SIDBI Sign MoU for Nationwide Verification of Informal Enterprises

The agreement marks a major institutional collaboration to enhance data integrity, financial inclusion and credit enablement for India’s informal enterprise ecosystem.

The Department of Posts (DoP) under the Ministry of Communications and the Small Industries Development Bank of India (SIDBI) have signed a landmark Memorandum of Understanding (MoU) to undertake Contact Point Verification (CPV) of Informal Micro Enterprises (IMEs) registered on the Udyam Assist Platform (UAP). The agreement marks a major institutional collaboration to enhance data integrity, financial inclusion and credit enablement for India’s informal enterprise ecosystem.

The MoU signing ceremony was held at Dak Bhawan, New Delhi, where it was inked by Ms. Manisha Bansal Badal, General Manager (Citizen Centric Services & Rural Business) on behalf of the Department of Posts, and Shri Amit Nagar, Deputy General Manager, SIDBI.

Building a Structured National Verification System

The agreement creates a formal, nationwide verification framework to ensure the accuracy and authenticity of enterprise data on the Udyam Assist Platform. This will help strengthen the credibility of IME information for lenders and policymakers, significantly improving the ability of informal units to access institutional credit.

Role of India Post: Deep Last-Mile Verification

With 1.64 lakh Post Offices, India Post operates the world’s largest postal network. Leveraging:

• its extensive last-mile presence,

• trained field workforce, and

• experience in financial inclusion and digital services,

India Post will conduct on-ground CPV of enterprises registered on UAP. The verification will include:

• Confirmation of demographic and business details

• Physical validation of enterprise location

• Geo-tagged photographic evidence

• Real-time field reporting as per SIDBI’s standards

This strengthens India Post’s growing role in delivering citizen-centric, business-to-government and financial services.

SIDBI’s Role: Strengthening Formalisation and Credit Enablement

SIDBI, the apex institution for MSME development, administers the Udyam Assist Platform—a digital bridge to formalise Informal Micro Enterprises, validate their data and help them become eligible for structured financing.

SIDBI will:

• Develop and operate the CPV mobile application

• Provide backend infrastructure and technical support

• Issue operational guidelines

• Conduct training for postal field staff

• Ensure quality, security and uniform verification processes across all States

This robust CPV mechanism will give lenders greater confidence in credit decisions for informal micro enterprises.

Technology-Enabled Implementation

The initiative will be driven by a dedicated digital CPV mobile application. Key features include:

• Real-time data capture

• Geo-tagged images

• Secure report submission

• Standardised verification protocols

• Integration with UAP backend systems

The digital approach ensures speed, transparency, and nationwide scalability.

Tenure and Safeguards

The MoU will remain valid for two years—from 31 December 2025 to 30 December 2027—with provisions for extension. The agreement includes clauses on:

• Data confidentiality and privacy

• Information security

• GST compliance

• Structured payment and settlement mechanisms

A Significant Boost for MSME Formalisation

This partnership represents a major step forward in using India Post’s trusted nationwide platform to support key national priorities such as:

• MSME development

• Financial inclusion

• Digital empowerment

• Formalisation of the informal economy

By improving verification quality and expanding credit access, the MoU will help strengthen India’s informal micro enterprise sector—an essential driver of employment, local value creation and grassroots economic resilience.