Prelims: Current events of national and international importance | Polity & Economy
Why in News?
Recently, the rajya sabha introduced the micro, small and medium enterprises development (amendment) bill, 2026.
- Amendment to – Micro, Small and Medium Enterprises Development Act, 2006.
- Aim – To facilitate the promotion and development of Micro, Small, and Medium Enterprises (MSMEs).
- Key features
- Classification – The government is authorized to classify MSMEs based on investment and turnover.
- Registration – Submission of the memorandum is voluntary for all MSMEs.
- Digital platforms for registration will be notified by the central and state governments.
- Invoice Settlement – Central Public Sector Enterprises (CPSEs) are required to use the Trade Receivables Discounting System (TReDS).
- The central and state governments may extend this requirement to other public sector undertakings and entities.
- Dispute Resolution – Mediation must be completed within 90 days.
- Referral to arbitration must occur within 30 days following the conclusion of mediation.
- The arbitration award should be issued within 90 days of the completion of pleadings.
- Court Challenges – Applications may be filed against arbitration awards and mediated settlements.
- A deposit of 75% is required, and the court may release a portion of this amount.
- If the matter is pending for more than six months, at least 50% of the deposit must be released.
- Decriminalisation – Providing false information or failing to furnish required details results in a warning and graded penalties ranging from ₹1,000 to ₹50,000.
- Failure to report unpaid dues leads to a warning and escalating penalties from ₹10,000 to ₹1 lakh.
- All penalties increase by 10% every three years.
- Adjudication – The Development Commissioner serves as the adjudicating officer, and appeals may be made to the Secretary of MSME.
Reference
PRS | The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026
