Loading…
The Ministry of MSME launched the Online Dispute Resolution (ODR) Portal to help micro and small enterprises recover delayed payments faster.
The portal offers a pre-MSEFC negotiation mechanism and a Digital Guided Pathway to resolve disputes through negotiation and mediation.
The initiative operates under the World Bank-assisted RAMP Programme and leverages the MSMED Act, 2006.
Before escalating a dispute to a formal council (MSEFC), the portal allows buyers and suppliers to negotiate and share information in a non-adversarial digital environment, guided by an AI/rule-based 'Digital Guided Pathway' that predicts likely outcomes.
Simple Analogy: Like an out-of-court settlement guided by a mediator, saving time before filing a formal lawsuit.
Establishes the Micro and Small Enterprises Facilitation Council (MSEFC) as a quasi-judicial body at the State/UT level to conduct conciliation and arbitration.
Mandates buyers to pay within 45 days (or 15 days if no agreement exists). Default invites compound interest at three times the RBI bank rate.
Scale up MSME capacity, credit access, and state-centre coordination.
Key: Launched June 30, 2022 as a World Bank-assisted Central Sector Scheme. Funds the MSME ODR platform.
GS Paper 2 > Statutory Bodies
Consider the following statements with reference to India: 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between ₹15 crore and ₹25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?
Answer: Neither 1 nor 2
Micro and Small Enterprises Facilitation Council, a state-level quasi-judicial body.
World Bank assisted programme for MSME performance acceleration.