{"id":389475,"date":"2026-07-06T10:00:37","date_gmt":"2026-07-06T04:30:37","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=389475"},"modified":"2026-07-06T09:59:18","modified_gmt":"2026-07-06T04:29:18","slug":"msme-ministry-notifies-mandatory-use-of-treds-by-cpses","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/06\/msme-ministry-notifies-mandatory-use-of-treds-by-cpses\/","title":{"rendered":"New TReDS Mandate for CPSEs: Key Changes for MSME Payments"},"content":{"rendered":"
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On 30 June 2026, the Ministry of Micro, Small and Medium Enterprises (MSMEs) issued a mandate requiring all operational Central Public Sector Enterprises (CPSEs) to use Trade Receivables Discounting System (TReDS) platforms for the settlement of MSME invoices.<\/p>\n

The notification came into effect on 30 June 2026.<\/p>\n

Background:<\/p>\n

MSMEs often face delays in receiving payments for goods and services supplied, leading to working capital constraints and cash flow challenges. Although TReDS was introduced to facilitate faster payments and provide access to financing against receivables, its adoption among government-linked entities remained limited. By making TReDS the mandatory settlement route for CPSEs, the government aims to promote transparency, accountability, and faster payment processing.<\/p>\n

Key Takeaways:<\/p>\n

    \n
  1. \n

    The mandate is issued under Sections 9 and 10 of the Micro, Small and Medium Enterprises Development Act, 2006.<\/p>\n<\/li>\n

  2. \n

    Under the new mandate:<\/p>\n