The Ministry of Micro, Small & Medium Enterprises (MSME) on August 07, 2026, issued a notification regarding amendments to the MSMED Act, 2006 to strengthen the MSME Framework.
The following has been stated: -
•The MSMED Amendment Bill, 2026 strengthens the MSME framework by making Udyam Registration a permanent digital platform and incorporating investment and turnover-based classification in the Act.
•It introduces Online Dispute Resolution and strict timelines for mediation, arbitration and delayed-payment disputes, along with stronger enforcement and recovery mechanisms.
•All CPSEs will be required to route MSME invoice settlements through TReDS, while States may establish multiple MSEFCs for faster dispute resolution.
•The amendments also decriminalise certain offences and introduce graded civil penalties, promoting ease of doing business and a trust-based MSME regulatory environment.
The detailed notification is given in the document below.
[Notification No.: 2296358]
