MSME Amendment Bill 2026 Explained: What changes for corporate payments, disputes and CFOs

•The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026, passed by Parliament, introduces mandatory routing of MSME invoice settlements through Trade Receivables Discounting System (TReDS) for Central Public Sector Enterprises (CPSEs).

•The Bill sets 90-30-90 timelines for MSME payment disputes, including mediation completion within 90 days, arbitration within 30 days, and award within 90 days.

•MSME registration becomes free and voluntary, with classification based on investment and turnover, and the Central Government will notify actual thresholds.

•The Bill replaces conviction-based penalties with warnings and graded monetary penalties for certain violations, and requires courts to direct payment of at least 50% of awarded amounts to MSME suppliers.