The Ministry of Micro, Small and Medium Enterprises has mandated all operating Central Public Sector Enterprises (CPSEs) to settle invoices of MSME suppliers through the Trade Receivables Discounting System (TReDS), a notification said.
The move fulfils a key announcement made in the Union Budget 2026-27 and is aimed at addressing delayed payments, one of the biggest challenges faced by MSMEs.
Under the new framework, all invoices raised by MSMEs on CPSEs will be routed through RBI-authorised TReDS platforms, allowing suppliers to receive financing against approved invoices before the due date.
Financing on TReDS is provided without recourse to the seller, with banks and non-banking financial companies competitively bidding to discount invoices, enabling MSMEs to receive funds at competitive interest rates without collateral.
A Benchmark For Corporate India
CPSEs will be required to disclose details of MSME invoices routed and settled through TReDS in line with RBI guidelines, and to obtain a statutory auditor certificate confirming TReDS registration and compliance during annual audits. The ministry said the mandate is also expected to set a benchmark for timely payment discipline across corporate India by positioning CPSEs as role models for large buyers.
More than 8.70 crore enterprises are registered on the Udyam Registration Portal and Udyam Assist Platform, employing over 38 crore people. The ministry said delayed payments have continued to constrain the sector by locking up working capital and affecting business growth. |
