“The onboarding process on the Trade Receivables Discounting System platforms shall be completed by 31st March, 2025,” the MSME Ministry said in a notification. Businesses with more than Rs.250 crores turnover, from earlier Rs.500 crores and all Central Public Sector Enterprises (CPSEs) will now be required to onboard the invoice discounting platform TReDS by the Reserve Bank of India (RBI), the MSME Ministry notified on Thursday. According to the notification, the onboarding process on the TReDS platform, which includes RXIL, M1xchange, Invoicemart and C2treds is to be completed by the end of this financial year.
The Minister had said that this would lead to the onboarding of 22 more Central Public Sector Enterprises (CPSEs) and 7,000 more companies on TReDS. Moreover, Sitharaman had also announced that medium enterprises (with turnover between Rs. 50 crores and Rs. 250 crores) will also be included in the scope of the suppliers. “With outstanding MSME dues exceeding Rs.21,000 crores, as reported on the Samadhan Portal, this requirement expands access to timely, structured financing options, facilitating prompt payments for MSME goods and services. As a TReDS platform, we see this move not only as a bridge to narrow the credit gap but also as a catalyst for strengthening MSME financial resilience nationwide,” Sundeep Mohindru, Founder and Promoter, M1xchange told FE Aspire.
TReDS had financed 41.6 lakh invoices involving Rs.1.38 lakh crores during FY24. According to the Government Data, the number of invoices financed across four licensed TReDS platforms in FY24 jumped 62% from the previous year, while the amount involved was up by 80%. In FY23, aggregate financing of 25.6 lakh invoices involving Rs.76,638 crores were reported across four platforms. The Central Bank had undertaken the TReDS initiative in 2014 to enable MSME suppliers to discount their invoices and receive payments before their due date by ensuring the conversion of their bills into liquid funds in a short period.
Source : https://www.financialexpress.com/business/sme-treds-govt-reduces-turnover-threshold-to-rs-250-cr-to-get-more-companies-on-rbi-invoice-discounting-platform-3659670/
