Government Mandates TReDS for Settlement of MSME Invoices

Recently, the Ministry of Micro, Small and Medium Enterprises (MSME) mandated that all operating Central Public Sector Enterprises (CPSEs) settle invoices of MSME suppliers through the Trade Receivables Discounting System (TReDS).

Key Provisions

  • Mandatory TReDS Settlement: All operating CPSEs must route the settlement of invoices for goods and services procured from MSMEs through RBI-authorised TReDS platforms.
  • Transparency & Compliance: CPSEs must disclose details of MSME invoices processed through TReDS and obtain a statutory auditor's certificate confirming TReDS registration and compliance during annual audits.
  • Payment Discipline: The move is intended to make CPSEs a benchmark for timely payments and encourage similar practices among ....
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