Government Mandates CPSEs to Use TReDS for MSME Payments
The Indian government has mandated that central public sector enterprises (CPSEs) pay their micro, small and medium enterprise (MSME) suppliers through Reserve Bank of India-approved Trade Receivables Discounting System (TReDS) platforms. This requirement aims to address chronic payment delays and enhance access to working capital for small businesses. The notification follows a proposal in the Union Budget for 2026-27. CPSEs must disclose details of MSME invoices routed through TReDS and obtain a statutory auditor’s certificate for compliance. Since 2017, over 110,000 cases related to delayed payments from central PSUs have been filed, amounting to more than ₹31,500 crore. The MSME sector contributes 31.1% to India’s GDP and 48% of exports, highlighting the importance of timely payments for economic growth.
Published 1 day ago • 10 Jul 2026, 03:49 PM IST