45-day payment rule: New fund will work with banks to help MSME units, says FM Sitharaman

Finance Minister Nirmala Sitharaman revealed that the government is establishing a new fund to help MSMEs facing financial issues due to delayed payments. Traders must now clear MSME bills within 45 days according to Section 43B(h) of the Income Tax Act. The new rule, active from April 1, has made MSMEs apprehensive. The budget has also offered collateral-free loans for MSMEs and proposed a Rs 1000 crore venture capital fund for the space sector. Additionally, the Rs 1 lakh crore Anusandhan National Research Fund will support research and innovation, particularly in Bengaluru.