For the Mirco, Small & Medium Enterprises (MSMEs) an awareness program will be held on December 18, 2018, for educating them on delayed payment act and powers of MSE Facilitation Council (MSEFC) at Vidya Vikas Engineering & Technology Institution Alanahalli, Mysuru.
This will guide MSEs on how to recover their payments or dues from other industries or state and central government bodies, etc. This recovery is essential as it affects the working capital requirement and might even result in the closure of small businesses. According to Section 15-24, The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006, there is a provision of recovering delayed payments or late payment of commercial debts
According to provisions mentioned under Section 16, Reserve Bank notifies the buyer if the payment is not made within 45 days of receiving service or product then he/she is liable to pay a monthly interest on total amount which is three times of bank rate along with a compound interest.
All MSMEs and industry departments who make a purchase from micro and small enterprises can participate in this program and clear their issues or get insights on MSME interest rate for delayed payment, MSME schemes for entrepreneurs, MSME loan scheme etc.