What changed, newest first
Law, rates and portals that affect MSME delayed-payment claims, with what each change means in practice. Guides written before 2025 miss most of this.
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7 Oct 2026Interest rate
RBI raises rates: Section 16 interest is now 17.25% a year
The Monetary Policy Committee raised the repo rate by 25 basis points to 5.50%, its first increase since February 2023. The Marginal Standing Facility rate and the Bank Rate moved to 5.75%. Three times that is 17.25% a year, compounded monthly, up from 16.50% since December 2025.
What to do: refresh any claim schedule prepared before 7 October, and say in the claim which date's Bank Rate you apply. The calculator supports both approaches.
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13 Aug 2026Statute
The MSMED (Amendment) Act, 2026
Introduced in the Rajya Sabha on 28 July 2026 (Bill No. LXXII of 2026), passed by the Rajya Sabha on 3 August and the Lok Sabha on 7 August, and reported as published on 13 August 2026 as Act No. 16 of 2026. Its provisions come into force on dates the Central Government notifies, and different provisions can start on different dates. Check the commencement notification before relying on any of them.
Area What the Act provides Time limits Mediation within 90 days of the first appearance date (s.18(3A)). Reference to arbitration within 30 days of failed mediation (s.18(4)). Award within 90 days of completion of pleadings (s.18(4A)). Recovery New s.18A: a mediated settlement or award can be recovered as arrears of land revenue through the Collector where the buyer's assets are. The amount is a debt recognisable under the IBC. Challenges Substituted s.19: 75% deposit for challenging an award or a mediated settlement; the court may release a reasonable part to the supplier, and must release at least 50% of the award if the challenge is pending over six months. Challenges are filed where the supplier's official address is. Jurisdiction and online hearings s.18(5): the Council at the supplier's official address as per its registration, for a buyer anywhere in India. s.18(6) and (7): an online mechanism for mediation and arbitration by audio-video and electronic means. TReDS New s.15A: every central PSU must route settlement of MSME invoices through an RBI-authorised TReDS platform. The Centre and States may extend this to other entities. New s.22A: disclosure of invoices settled that way. Councils States to set up an adequate number of Councils that meet regularly, with infrastructure and trained staff. Each has 3 to 5 members, led by an officer not below Joint Director, with at least one member from the field of law. Registration and classification A free, voluntary national digital platform for registration (s.8). Classification by investment and turnover, with limits notified by the Centre (s.7). Penalties Decriminalised. A buyer that fails the s.22 disclosure gets a warning first, then a penalty of ₹10,000 to ₹50,000, then a fine of ₹50,000 to ₹1 lakh, with minimums rising 10% every three years. Adjudicated by the Development Commissioner, with appeal to the MSME Secretary. One more dependencyThe new time limits are written into Section 18 as substituted by the Mediation Act, 2023. That substitution (Section 62 and the Seventh Schedule of the Mediation Act) also has to be in force for mediation to replace conciliation.Sources: Bill text (PRS) · PIB factsheet, 11 Aug 2026 · PRS bill page
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27 Jun 2026Portal
Samadhaan 2.0 launched on MSME Day
Among the platforms launched on MSME Day 2026 was Samadhaan 2.0, reported to track outstanding dues owed to MSMEs by central ministries, departments and central PSUs, with mandatory monthly reporting by those buyers. It builds on a Samadhaan sub-portal for central-government dues set up in June 2020.
Why it matters: dues from central government buyers are now reported centrally every month, which strengthens follow-up with those buyers.
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1 Apr 2026Tax
Income-tax Act, 2025: Section 43B(h) continues as Section 37(2)(g)
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. A government reply in Parliament confirms that Section 37(2)(g) corresponds to Section 43B(h): any sum payable to a micro or small enterprise beyond the time limit in Section 15 of the MSMED Act is deductible only in the year it is actually paid. Paying before the return due date does not rescue the deduction.
Why it matters: every rupee a buyer holds back past 45 days can move its deduction into a later year. That is a strong reason to settle before the year closes.
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Oct 2025Filing channel
New applications move from Samadhaan to the ODR portal
MSME Samadhaan now carries the notice: "All new delayed payment applications will now be filed at the MSME ODR Portal." The cut-over has been reported as 15 October 2025. Applications filed earlier remain on Samadhaan and can be tracked there.
Why it matters: guides and videos that walk you through "filing on Samadhaan" describe a route that is closed to new cases.
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17 Jul 2025Supreme Court
Sonali Power: old claims can still be conciliated
The Limitation Act does not apply to conciliation under Section 18(2), but it does apply to arbitration under Section 18(3). The buyer's Section 22 disclosures may extend limitation, decided case by case. Read the summary.
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27 Jun 2025Portal
MSME ODR portal launched
Built under the MSE Scheme on Online Dispute Resolution for Delayed Payments, a sub-scheme of the World Bank-supported RAMP programme, with an outlay of ₹188.96 crore for 2023-24 to 2026-27. It adds a voluntary pre-MSEFC stage (guided pathway and unmanned negotiation), online conciliation and arbitration, e-notices, and a one-time grant of up to ₹4,000 per enterprise towards documentation and Council fees. How filing works.
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1 Apr 2025Classification
Higher MSME limits
Notification S.O. 1364(E) of 21 March 2025: micro up to ₹2.5 crore investment and ₹10 crore turnover; small up to ₹25 crore and ₹100 crore; medium up to ₹125 crore and ₹500 crore. Many enterprises that had outgrown "small" are covered again. Check your category.
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22 Jan 2025Supreme Court
TANCEM: writs and conciliator-arbitrators go to five judges
Whether India Glycols bars writ petitions absolutely, and whether a Council that conciliated may arbitrate, were referred to a five-judge bench. Read the summary.
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10 Jan 2025Supreme Court
NBCC: registration is not a precondition to a reference
A two-judge bench read "any party to a dispute" in Section 18 broadly and referred the registration-timing question to three judges. Read the summary.
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7 Nov 2024TReDS
More buyers must join TReDS
Notification S.O. 4845(E) under Section 9 required every company with turnover above ₹250 crore (earlier ₹500 crore) and every central PSU to onboard a Trade Receivables Discounting System platform by 31 March 2025. Suppliers can then discount accepted invoices on those platforms instead of waiting.
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6 Nov 2023Supreme Court
India Glycols: no writ to dodge the 75% deposit
Council awards are challenged under Section 34 of the Arbitration Act, after the Section 19 deposit, not by writ. Read the summary.
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14 Sep 2023Statute
Mediation Act, 2023: Councils will mediate, once notified
Section 62 and the Seventh Schedule substitute Section 18 of the MSMED Act so that Councils mediate under the Mediation Act instead of conciliating. Only some sections of the Mediation Act were brought into force in October 2023, and Section 62 was not among them. Until it is, conciliation continues.
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1 Apr 2023Tax
Section 43B(h): late MSE payments deductible only when paid
The Finance Act, 2023 added clause (h) to Section 43B of the Income-tax Act, 1961, from financial year 2023-24. Sums owed to micro and small enterprises beyond the Section 15 limit became deductible only on actual payment, which made buyers' tax teams care about the 45-day rule.