Jira & Confluence 
Bitrix24 MSMED Act, 2006 · Sections 15–18
MSME delayed payment notice — with interest and the 45-day date
Short answer. The notice is already open below: fill in your Udyam number and invoices and send it to the buyer. Payment without a written agreement on the date: Before the appointed day — the day after 15 days from acceptance (MSMED Act, 2006, s.15 with s.2(b)).
- No payment date agreed: payment due within 15 days (before the 'appointed day'): type the date
- Payment date agreed: the latest it can be — 45 days from acceptance: type the date
Check your own case.
Section 15 of the MSMED Act: the buyer pays on the agreed date, which cannot be more than 45 days from acceptance; if nothing was agreed, before the appointed day — the day after 15 days from acceptance. From that point compound interest with monthly rests runs at three times the RBI bank rate (Section 16).
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Start with the acceptance date of each invoice — everything else, the due date and the interest, is counted from it.
Attach the Udyam certificate and keep the postal proof. You will need both if the matter goes to the Facilitation Council.
An illustrated character, not a lawyer.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Payment without a written agreement on the date | Before the appointed day — the day after 15 days from acceptance | MSMED Act, 2006, s.15 with s.2(b) |
| Payment with an agreed date | On the agreed date, never later than 45 days from acceptance | MSMED Act, 2006, s.15 |
| Interest on late payment | Compound interest, monthly rests, at 3 × the bank rate notified by the RBI | MSMED Act, 2006, s.16 |
| Buyer's liability | The amount due with interest under s.16 | MSMED Act, 2006, s.17 |
| If the buyer still does not pay | Reference to the Micro and Small Enterprises Facilitation Council | MSMED Act, 2006, s.18 |
On 19 October 2026 the RBI website shows a Bank Rate of 5.75%, so the Section 16 rate is 17.25% a year, compounded monthly. The rate changes with RBI policy — check rbi.org.in on the day you calculate.
Step by step
What to do, in order
1
Check you qualify
You need Udyam Registration as a micro or small enterprise. Keep the certificate ready.
2
List the invoices
For each invoice note the acceptance date and any agreed payment date. The calculator above shows the due date.
3
Work out the interest
Take the RBI Bank Rate, multiply by 3 and compound monthly from the due date. Put the figures in the table.
4
Send the notice
Speed post or registered post with acknowledgement, plus e-mail. Give the buyer a clear number of days to pay.
5
File on the ODR portal
If the buyer does not pay, file your reference on the MSME Online Dispute Resolution portal (odr.msme.gov.in), attaching the notice and proof of delivery.
Questions
Our contract says 90 days. Does the 45-day limit still apply?
Yes. Section 15 caps any agreed period at 45 days from acceptance, whatever the contract says.
Can the buyer refuse to pay interest because the contract has a lower rate?
Section 16 makes the buyer liable for compound interest at three times the RBI bank rate on late payments to micro and small suppliers. Claim it in the notice.
Can a medium enterprise use this notice?
No. The delayed payment rules in Sections 15–18 protect micro and small enterprises only.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
This is a ready document and a deadline calculation, not legal advice.