Common questions on recovering delayed payments as an msme, explained in plain terms, under Indian law.
Before the frequently asked questions
Under MSMED Act ss.15-16, a buyer must pay a registered micro or small enterprise within 15 days, or within any agreed period not exceeding 45 days; a delay attracts compound interest, with monthly rests, at 3 times the RBI's notified bank rate.
Practice on this point varies and should be confirmed locally, but an MSMED Amendment Bill 2026 passed both houses of Parliament in August 2026, reportedly adding 90-day mediation and award timelines and pre-deposit rules, but its presidential assent and commencement date are not confirmed as of this research.
Frequently asked questions
How quickly must I be paid as a registered MSME supplier?
Within 15 days, or within any agreed period not exceeding 45 days. A delay attracts compound interest at 3 times the RBI's notified bank rate, with monthly rests.
For a fuller explanation, see Recovering Money Owed to You: The Limitation Period and Your Options.
If this touches a situation you are dealing with, you are welcome to discuss it in a consultation.
This overview is general information, not legal advice. Procedures and local practice can differ, so a specific review of your matter is advisable before acting.
This page provides general information about the law in India and is not legal advice. For advice on your specific situation, please consult a qualified advocate.