New Delhi, July 10 (AHN) The Central government has made it mandatory for all operating Central Public Sector Enterprises (CPSEs) to route settlement of invoices for goods and services procured from Micro, Small and Medium Enterprises (MSMEs) through TReDS platforms authorised by the Reserve Bank of India, an official statement said on Friday.

The notification requires CPSEs to disclose details of MSME invoices routed and settled through TReDS as specified by the RBI and to obtain a statutory auditor’s certificate of TReDS registration and compliance during their annual audit.

The move is intended to position Central Public Sector Enterprises (CPSEs) as role models for timely payment discipline for large corporate buyers across the country.

The move will also help end long payment delays faced by MSMEs and provide them working capital within a short span of time at competitive rates of interest.

With every CPSE invoice flowing through TReDS, MSME suppliers can convert approved invoices into cash well before the due date. Further, financing on TReDS is collateral-free and without recourse to the seller, with banks and NBFCs bidding competitively to discount invoices.

"By making TReDS the settlement route for all CPSE purchases from MSME, public sector procurement will now work actively for the small supplier: procurement by CPSEs gets captured on TReDS, and timely payment to MSME will be ensured through invoice financing from banks and financial institutions," the statement noted.

The notification, issued on June 30, 2026, gives effect to a key announcement of the Union Budget 2026–27.

MSMEs function as the backbone of the Indian economy, with over 8.70 crore enterprises registered on the Udyam portals, and employ over 38 crore persons.

TReDS is an RBI-regulated electronic platform, operational since 2017, for financing and discounting the trade receivables of MSMEs due from corporate buyers, government departments and public sector undertakings, through competitive bidding by multiple financiers.

—AHN

aar/pk