Date:April 14, 2023
Payment to MSME – MSME Payment RulesRules
MSME Law Notes by NB Associates
The Government of India has implemented various rules and regulations to ensure timely payment to MSMEs (Micro, Small, and Medium Enterprises).
Here are some of the key rules related to the payment to MSMEs:
This act defines the timeframe for payment to MSMEs.
According to the act, the buyer is required to make payment to the MSME supplier maximum within 45 days of the acceptance of goods or services.
If the buyer fails to do so, they are liable to pay interest at three times the prevailing bank rate notified by RBI .
This policy mandates that at least 25% of the total annual procurement of goods and services by Central Ministries/Departments/Public Sector Undertakings (PSUs) should be from MSMEs.
This is an online platform that facilitates the financing of trade receivables of MSMEs through multiple financiers. It enables MSMEs to get their bills discounted at competitive rates and receive payment within a shorter timeframe.
This portal enables MSMEs to file their grievances related to delayed payments by buyers.
The portal also provides information on the status of their complaints.
This code provides a time-bound and structured mechanism for the resolution of insolvency and bankruptcy cases of companies, including MSMEs.
Overall, these rules and regulations aim to provide a conducive environment for the growth and development of MSMEs by ensuring timely payment to them.