The Ministry of Micro, Small & Medium Enterprises on July 10, 2026, has mandated that all Central Public Sector Enterprises (CPSEs) must settle invoices for goods and services procured from MSMEs exclusively through RBI-authorised Trade Receivables Discounting System (TReDS) platforms, with effect from June 30, 2026. This measure aims to address the persistent issue of delayed payments to MSMEs by ensuring that all such transactions are routed through a transparent and efficient digital financing mechanism.
Under the mandate, CPSEs are required to maintain transparency by disclosing details of MSME invoices processed through TReDS and obtaining certification from statutory auditors regarding their registration and compliance. The move is expected to set a benchmark for payment discipline across corporate India, positioning CPSEs as role models in ensuring timely payments to small suppliers.
The initiative enables MSMEs to access quicker liquidity by allowing them to discount their approved invoices on TReDS platforms through competitive bidding by banks and NBFCs. This collateral-free financing mechanism improves working capital availability and supports business growth. Overall, the mandate strengthens the MSME ecosystem by enhancing cash flow, reducing payment delays, and promoting a more robust digital financial infrastructure.
[Release ID: 2283195]
