Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 wherein enterprises have been classified as under:
Its main objectives:
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Remove impediments due to multiple laws
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Introduce statutory consultative and recommendatory bodies on MSME policies
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Improve registration procedures of MSMEs
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Statutory basis for purchase preference and credit policies
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Improve realisation of payments of MSMEs
MSME Delayed Payment:
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The MSMED Act, 2006 contains provisions to protect MSEs against delayed payments
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As per the Act, the buyer has to make payment to the MSE supplier for the goods/services within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance.
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If not, then the buyer is liable to pay compound interest (on monthly basis) to the supplier on the amount delayed at three times of the bank rate notified by Reserve Bank.
MSME Samadhaan Portal
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GoI portal for MSEs to directly register their cases regarding delayed payments by Central Ministries/Departments/CPSEs/State Governments and other buyers
MSE Facilitation Council
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State Governments to establish MSEFC for settlement of delayed payment related disputes
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MSEFC hold meetings regularly; and delayed payment cases have to be decided within a period of 90 days
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