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The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 was introduced in the Rajya Sabha on 28 July 2026, amending the 2006 Act.
It requires Central PSEs to settle MSME invoices through RBI-authorised TReDS platforms, and sets 90-day statutory timelines for mediation and arbitration in payment disputes.
Courts may order payment of at least 50% of an awarded amount to MSME suppliers if a challenge to the order stays pending over six months.
The Bill proposes a national digital platform for free MSME registration and decriminalises certain offences by replacing criminal fines with graded penalties.
An RBI-regulated electronic platform for financing trade receivables of MSMEs through multiple financiers, helping resolve working-capital pressure caused by delayed invoice payments.
Simple Analogy: An online marketplace where an MSME's unpaid invoice can be 'sold' to a financier for quick cash, instead of waiting for the buyer to pay.
GS Paper III > MSME Sector & Economy
Banking Awareness > MSME Financing, TReDS
In the context of polity, which one of the following would you accept as the most appropriate definition of liberty?
Answer: Opportunity to develop oneself fully
Trade Receivables Discounting System, an RBI-regulated platform for MSME invoice financing