MSME Bill Promises Quicker Payments, Fewer Disputes

What Happened

Parliament has approved a major reform aimed at protecting MSMEs from delayed payments. The new law introduces stricter timelines for dispute resolution, faster access to dues, and improved payment mechanisms, offering a liquidity boost to India's small business sector. The new law mandates faster settlement of MSME dues, requires mediation of disputes within 90 days, and allows courts to order payment of at least 50% of an awarded amount if an appeal remains pending for over six months.