Despite MSMEs' critical role in the Indian economy, including the ambition of a USD 5 trillion economy, the category has constant cash flow challenges, impeding small entrepreneurs' capacity to operate smoothly. MSMEs have also faced challenges from legislative initiatives such as demonetisation, the implementation of goods and services tax (GST), and the pandemic, among others, in recent years. The pandemic, in particular, was a severe disruptor of MSME operations. Payment and cash flow issues Meanwhile, one of the persistent issues confronting MSMEs is the issue of late payments. MSMEs were due around Rs15 lakh crore, according to 2021 estimates. Even this is not a comprehensive figure; it only represents the working capital shortage faced by a subset of India's registered MSMEs, which account for only 13% of all existing small businesses. One of the major reasons for MSMEs facing cash flow issues is the lack of credit support from formal financial institutions, including banks. As formal lenders do not advance loans, small businesses are forced to seek credit from unorganised entities that typically charge exorbitant interest rates.