Government notifies mandatory TReDS settlement of all MSME invoices by operating Central Public Sector Enterprises (CPSEs)
The Ministry of Micro, Small and Medium Enterprises has made TReDS mandatory for settlement of invoices by operating CPSEs for MSME suppliers.
AI generated- Trade Receivables Discounting System is an RBI-regulated electronic platform for financing and discounting MSME receivables through competitive bidding by financiers.
- All operating Central Public Sector Enterprises must route settlement of MSME invoices through RBI-authorised TReDS platforms under the notification issued on 30 June 2026.
- The Ministry states that more than 8.70 crore enterprises are registered on the Udyam Registration Portal and Udyam Assist Platform.
- The Ministry states that the registered MSME base provides employment to more than 38 crore persons.
The Ministry of Micro, Small and Medium Enterprises has notified mandatory use of TReDS for settlement of invoices by all operating Central Public Sector Enterprises (CPSEs) for goods and services procured from Micro, Small and Medium Enterprises (MSMEs). The change is intended to reduce delayed payments, improve working capital for small suppliers, and make public procurement more transparent.
The notification was issued on 30 June 2026 and gives effect to a key announcement in the Union Budget 2026–27. The official release presents the step as a response to persistent payment delays faced by MSMEs.
What changed now
UPSC may frame this as a policy intervention to address delayed payments to MSMEs through an RBI-regulated digital platform. A likely analytical line is how mandatory TReDS adoption by CPSEs can improve liquidity, transparency, and credit access while implementation and coverage remain important.
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