New Delhi, April 30 -- The government is actively considering options to relax the stringent 45-day payment rule for Micro, Small and Medium Enterprises (MSMEs), which came into effect on April 1, 2023.

According to a senior government official, the move to potentially dilute the rule is being contemplated in response to concerns raised by businesses and trade bodies like the Confederation of All India Traders (CAIT), reported Moneycontrol.

They have highlighted that the severity and lack of clarity surrounding the rule could disrupt established business practices and trade.

"The MSME Ministry has had discussions with the Finance Ministry on the 45-day payment rule. Some resolution is likely in the July Budget. There are options. Resol...