Government mandates TReDS for settlement of all MSME invoices by CPSEs
The Ministry of MSME notified on 30 June 2026 that all operating Central Public Sector Enterprises must settle invoices from MSME suppliers through RBI-authorised TReDS platforms, giving effect to a Union Budget 2026-27 announcement.
Summary
The Ministry of MSME issued a notification on 30 June 2026 making it mandatory for all operating Central Public Sector Enterprises (CPSEs) to route the settlement of invoices for goods and services bought from MSMEs through Trade Receivables Discounting System (TReDS) platforms authorised by the Reserve Bank of India, giving effect to a Union Budget 2026-27 announcement. CPSEs must disclose MSME invoices settled through TReDS and obtain a statutory auditor's certificate of TReDS registration and compliance in their annual audit. Financing on TReDS is collateral-free and without recourse to the seller, with banks and NBFCs bidding to discount invoices. TReDS is an RBI-regulated electronic platform operational since 2017; five platforms (RXIL, M1xchange, Invoicemart, C2treds and DTX) operate, and invoice discounting grew from Rs 40,000 crore in FY 2021-22 to Rs 3.47 lakh crore in FY 2025-26.
Key facts
- Notification
- 30 June 2026, Ministry of MSME; Union Budget 2026-27 announcement
- Who
- All operating CPSEs buying from MSMEs
- Compliance
- Disclosure of TReDS-settled invoices; statutory auditor's certificate
- Financing terms
- Collateral-free; without recourse to the seller
- TReDS (static)
- RBI-regulated, operational since 2017
- Platforms
- RXIL, M1xchange, Invoicemart, C2treds, DTX
- Volume
- Rs 40,000 crore (FY22) to Rs 3.47 lakh crore (FY26)
Practice MCQs 5 questions
The Ministry of MSME notification of 30 June 2026 makes it mandatory for which entities to settle invoices from MSME suppliers through TReDS platforms?
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Correct answer: A — All operating Central Public Sector Enterprises
The notification mandates all operating CPSEs to route the settlement of invoices for goods and services procured from MSMEs through RBI-authorised TReDS platforms.
TReDS (Trade Receivables Discounting System) platforms are authorised and regulated by:
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Correct answer: C — Reserve Bank of India
TReDS is an RBI-regulated electronic platform, and the CPSE mandate is for settlement through TReDS platforms authorised by the RBI.
Since which year has the TReDS platform for discounting trade receivables of MSMEs been operational?
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Correct answer: B — 2017
TReDS is an RBI-regulated electronic platform, operational since 2017, for financing and discounting MSME trade receivables through competitive bidding by multiple financiers.
Which of the following is NOT among the five TReDS platforms currently operational, as listed by the Ministry of MSME in July 2026?
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Correct answer: D — GeM
The five operational TReDS platforms are RXIL, M1xchange, Invoicemart, C2treds and DTX. GeM is the Government e-Marketplace, not a TReDS platform.
Consider the following statements about the TReDS mandate for CPSEs (June 2026): 1. Financing on TReDS is collateral-free and without recourse to the seller. 2. CPSEs must obtain a statutory auditor's certificate of TReDS registration and compliance during their annual audit. 3. Invoice discounting on TReDS was Rs 3.47 lakh crore in FY 2021-22. Which of the statements given above are correct?
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Correct answer: C — 1 and 2 only
Statements 1 and 2 are correct. Invoice discounting rose from Rs 40,000 crore in FY 2021-22 to Rs 3.47 lakh crore in FY 2025-26, so statement 3 is wrong.