New Delhi, July 10: PHD Chamber of Commerce and Industry welcomes the notification issued by the Ministry of Micro, Small and Medium Enterprises mandating all operating Central Public Sector Enterprises to route the settlement of invoices relating to procurement of goods and services from Micro, Small and Medium Enterprises through Reserve Bank of India - authorised Trade Receivables Discounting System platforms.
The notification, issued on 30 June 2026, fulfils an important commitment announced in the Union Budget 2026–27 and represents a significant step towards improving liquidity for MSMEs through faster, transparent and technology-enabled payment mechanisms.
MSMEs continue to be the backbone of the Indian economy, with more than 8.70 crore enterprises registered on the Udyam Registration Portal and Udyam Assist Platform, providing employment to over 38 crore people. Delayed payments have long constrained the growth of the sector by locking up working capital, limiting production capacity and increasing dependence on costly sources of finance.
The notification will not only improve liquidity for MSMEs but also strengthen transparency and accountability by requiring CPSEs to disclose TReDS transactions in accordance with RBI guidelines and obtain a statutory auditor's certificate confirming TReDS registration and compliance as part of the annual audit process.
"The mandatory adoption of TReDS by all Central Public Sector Enterprises is a transformational reform for the MSME ecosystem. Timely access to working capital is fundamental for business continuity, capacity expansion and employment generation ."said Mr. Rajeev Juneja, President, PHDCCI
With the mandatory routing of CPSE invoices through TReDS, MSME suppliers will have the opportunity to discount approved invoices through competitive bidding by banks and financial institutions, enabling access to collateral-free and non-recourse financing well before the contractual payment due date.
This initiative establishes an important benchmark for payment discipline across the corporate sector. Wider adoption of digital receivables financing has the potential to reduce working capital constraints, strengthen supply chains and enhance the competitiveness of MSMEs in domestic as well as international markets.
TReDS has witnessed remarkable growth in recent years. Invoice discounting through the platform has increased from nearly ₹40,000 crore in FY 2021-22 to around ₹3.47 lakh crore in FY 2025-26, reflecting increasing confidence among buyers, financiers and MSMEs. Currently, five RBI-authorised TReDS platforms are operational—RXIL, M1xchange, Invoicemart, C2treds and DTX.
"The notification is an important milestone in deepening formal supply chain finance in India. Mandatory settlement through RBI-authorised TReDS platforms will enhance transparency, improve access to affordable working capital for the MSME sector. The successful implementation of this framework can also serve as a model for wider adoption across large corporate buyers, strengthening the overall business ecosystem. "Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI
