Government introduces MSME Development (Amendment) Bill 2026 ensuring timely payments

Business Jul 28, 2026

The government introduced the MSME Development (Amendment) Bill of 2026 to help small businesses get paid on time.

The bill would mandate that government agencies use Reserve Bank of India (RBI)-approved digital platforms like RXIL and M1xchange to clear invoices from MSMEs: no more endless waiting for payments.

States can set up similar systems too, making things smoother across the board.

Bill creates special MSME dispute councils

The bill also speeds up how payment disputes are handled.

Special councils will resolve issues faster with set timelines, and courts can order partial payments if delays drag on for over six months.

Since MSMEs power nearly one-third of India's economy and almost one-half of its exports, these changes aim to give them a much-needed boost.