Yes. Digital payments made via UPI, NEFT, or other electronic means are recognized under the Indian
Evidence Act, 1872 (Section 65B). Such records are valid proof of transactions in recovery proceedings
before the MSME Facilitation Council.

Digital payments are legally enforceable in MSME disputes. The Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act) mandates that buyers make payments to MSMEs within a stipulated timeframe, typically 45 days, and digital payments are a valid form of payment that can be used to comply with this requirement.