NationalSaturday, 8 August 2026·Hindu Tamil Thisai
Lok Sabha passes MSME Development (Amendment) Bill, 2026 to curb payment delays
The Lok Sabha passed the MSME Development (Amendment) Bill, 2026 to speed up payments, resolve disputes within 90 days and ease penalties for small firms.
Key highlights
Direct fact
In August 2026, the Lok Sabha passed the MSME Development (Amendment) Bill, 2026, which seeks to reduce payment delays for micro and small enterprises and improve cash flow through the TReDS platform.
Key specifics
- The Bill was introduced in the Lok Sabha by MSME Minister Jitan Ram Manjhi.
- Payments for purchases by Central public sector enterprises from MSMEs must be made only through the TReDS online platform.
- MSME-related trade disputes must be resolved through arbitration within 90 days.
- If an appeal remains pending in court for more than 6 months, at least 50% of the disputed amount must be released to the MSME.
- For minor filing and registration errors, criminal action is removed and only administrative warnings and penalties from ₹1,000 to ₹1,00,000 will apply.
Exam lens
Economy and governance question, MSME Act reform, TReDS, 90-day arbitration, 50% interim release, penalty range ₹1,000–₹1,00,000; TNPSC may ask which minister moved the Bill and what payment mechanism is mandated.