New Delhi, Aug. 17 -- The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 can bring a major shift in payment discipline for MSMEs by introducing time-bound dispute resolution and stronger enforcement mechanisms, potentially creating an impact similar to the Insolvency and Bankruptcy Code (IBC), Crisil Intelligence said in a research report.

The legislation seeks to address the persistent problem of delayed payments by setting clear timelines for dispute resolution through Micro and Small Enterprises Facilitation Councils (MSEFCs). Mediation would have to conclude within 90 days from the date fixed for first appearance, while disputes that fail mediation would be referred to arbitration within 30 days, with awards r...