Late payments cripple small businesses. The MSMED Act protects registered MSMEs by making buyers liable to pay within 45 days and to pay compound interest if they delay.
This guide explains the protection and how to enforce it via MSME Samadhaan.
What is MSME Delayed Payments and MSME Samadhaan?
If a buyer accepts goods/services from a registered MSME, payment is due within the agreed date or 45 days at most. Delay attracts compound interest at three times the RBI bank rate.
Disputes can be filed on the MSME Samadhaan portal for resolution.
Frequently asked questions
What is the 45-day payment rule?
Buyers must pay a registered MSME within the agreed period, capped at 45 days; delays attract compound interest under the MSMED Act.
How do I recover a delayed MSME payment?
File a complaint on the MSME Samadhaan portal, which routes it to the Micro & Small Enterprise Facilitation Council for resolution.