The Government of India has made it mandatory for all operating Central Public Sector Enterprises (CPSEs) to route MSME supplier invoices through RBI-authorised Trade Receivables Discounting System (TReDS) platforms.
The notification, issued by the Ministry of MSME on 30 June 2026, implements a key announcement from the Union Budget 2026–27 and aims to improve payment discipline, transparency and access to working capital for MSMEs.
▶️ What Changes?
• All operating CPSEs must route MSME invoices through TReDS.
• CPSEs must disclose TReDS settlements and obtain statutory auditor certification.
• Invoice routing is mandatory, while invoice discounting remains optional for MSMEs.
• This aims to improve payment discipline and timely payments.
➡️ Why It Matters?
Delayed payments affect MSME cash flow and growth. TReDS enables collateral-free financing against approved invoices before the due date. Invoice financing has grown from Rs. 40,000 crore (FY 2021–22) to Rs. 3.47 lakh crore (FY 2025–26), reflecting its growing role in MSME finance.
Want to know more?
Read MSME TALK®’s blog on MSMEs’ delayed payment provisions under the MSMED Act to understand your legal rights in case of delayed payments:
Learn how TReDS works, who can participate and the latest developments:
