📷 Image: Wikimedia Commons / Ministry of Parliamentary Affairs
Business
Rajya Sabha Approves Bill to End MSME Payment Delays
✍️ Nagaland Post
🗓 04 Aug 2026, 11:36 AM
👁 29
The upper house of Parliament has passed a bill aimed at curbing the long‑standing issue of delayed payments to micro, small and medium enterprises.
The Rajya Sabha has approved a new bill that seeks to address the chronic problem of delayed payments to micro, small and medium enterprises (MSMEs). The legislation mandates that any party receiving goods or services from an MSME must settle the dues within 45 days of invoice receipt, with a maximum penalty of 10% of the amount for non‑compliance.
Under the bill, a dedicated MSME payment portal will be established to monitor transactions and enforce timely settlements. The government will also set up a grievance redressal mechanism to help businesses file complaints against defaulters.
Industry bodies have welcomed the move, noting that payment delays have been a major bottleneck for MSMEs, affecting their cash flow and growth prospects. The bill is expected to provide a more predictable financial environment for small businesses.
After its passage in the Rajya Sabha, the bill will be sent to the Lok Sabha for consideration. If passed, it could be enacted into law within a few weeks, bringing immediate relief to thousands of MSMEs across the country.
Under the bill, a dedicated MSME payment portal will be established to monitor transactions and enforce timely settlements. The government will also set up a grievance redressal mechanism to help businesses file complaints against defaulters.
Industry bodies have welcomed the move, noting that payment delays have been a major bottleneck for MSMEs, affecting their cash flow and growth prospects. The bill is expected to provide a more predictable financial environment for small businesses.
After its passage in the Rajya Sabha, the bill will be sent to the Lok Sabha for consideration. If passed, it could be enacted into law within a few weeks, bringing immediate relief to thousands of MSMEs across the country.