📷 Image: Wikimedia Commons / Ministry of Parliamentary Affairs
Business
Rajya Sabha Approves MSME Bill to Accelerate Payments and Resolve Disputes
✍️ Business Standard
🗓 03 Aug 2026, 08:38 PM
👁 22
The Rajya Sabha has passed a new MSME bill aimed at speeding up payments to micro, small and medium enterprises and establishing a streamlined dispute resolution mechanism.
The upper house of Parliament approved the Micro, Small and Medium Enterprises (MSME) bill on Tuesday, marking a significant step toward protecting the interests of the country’s largest business sector.
The bill introduces a 30‑day payment window for all transactions involving MSMEs, and it mandates that any overdue payment be settled within 15 days of a formal notice. It also sets up a dedicated dispute resolution panel to handle claims between MSMEs and larger corporates.
Industry bodies have welcomed the move, noting that delayed payments have long been a major bottleneck for small businesses. The new provisions are expected to improve liquidity and reduce the risk of insolvency among MSMEs.
After passing the Rajya Sabha, the bill will be sent to the Lok Sabha for consideration, with the government expected to draft implementation guidelines within the next few months.
The bill introduces a 30‑day payment window for all transactions involving MSMEs, and it mandates that any overdue payment be settled within 15 days of a formal notice. It also sets up a dedicated dispute resolution panel to handle claims between MSMEs and larger corporates.
Industry bodies have welcomed the move, noting that delayed payments have long been a major bottleneck for small businesses. The new provisions are expected to improve liquidity and reduce the risk of insolvency among MSMEs.
After passing the Rajya Sabha, the bill will be sent to the Lok Sabha for consideration, with the government expected to draft implementation guidelines within the next few months.