New Delhi, 10 July (H.S.):

The Central Government has made it mandatory for all Central Public Sector Enterprises (CPSEs) to settle invoices raised by Micro, Small and Medium Enterprises (MSMEs) through the Trade Receivables Discounting System (TReDS). The decision has been implemented through a notification issued on June 30, 2026, in line with the announcement made in the Union Budget 2026–27.

In a statement issued on Friday, the Ministry of Micro, Small and Medium Enterprises (MSME) said that all operational CPSEs will now be required to process payments for invoices submitted by MSME suppliers exclusively through the Trade Receivables Discounting System (TReDS). The initiative aims to accelerate payments and improve access to unsecured working capital for small businesses.

The Ministry stated that all operational Central Public Sector Enterprises will settle invoices for goods and services procured from MSMEs through TReDS platforms authorised by the Reserve Bank of India (RBI).

CPSEs will also be required to publicly disclose details of MSME invoices processed and settled through TReDS in accordance with RBI guidelines. In addition, they must obtain a compliance certificate from their statutory auditors during the annual audit confirming registration and adherence to TReDS requirements.

According to the Ministry, the new framework establishes CPSEs as a benchmark for timely payment discipline among large corporate buyers across the country.

The Trade Receivables Discounting System (TReDS) is an electronic platform regulated by the Reserve Bank of India and has been operational since 2017. It facilitates the financing and discounting of trade receivables due to MSMEs from corporate buyers, government departments and public sector undertakings through competitive bidding by multiple financiers.

The RBI-authorised TReDS platforms currently include RXIL, M1xchange, Invoicemart, C2treds and DTX. The platform has witnessed significant growth in recent years. The value of invoice discounting processed through TReDS has increased from ₹40,000 crore in the financial year 2021–22 to ₹3.47 lakh crore in the financial year 2025–26.

The Ministry said MSMEs remain the backbone of the Indian economy. More than 8.70 crore enterprises registered on the Udyam Registration Portal and the Udyam Assist Platform collectively provide employment to over 38 crore people across the country.

The Ministry added that the notification issued on June 30, 2026, operationalises a key announcement made in the Union Budget 2026–27. Further details of the notification have been published in the Gazette of India.

Hindusthan Samachar / Jun Sarkar