Government Moves To Accelerate MSME Payments Through TReDS Mandate
ECONOMY & POLICY

Government Moves To Accelerate MSME Payments Through TReDS Mandate

The government has announced a mandate to expand the use of the Trade Receivables Discounting System, TReDS, to accelerate payments to micro, small and medium enterprises. The measure is designed to shorten receivable cycles and to strengthen liquidity for suppliers across sectors. Under the proposal, buyers and financiers will route eligible invoices through registered TReDS platforms so that invoices can be discounted and settled faster than under conventional payment terms.

The rule is intended to make cash conversion more predictable for smaller firms that often face long payment delays from larger corporates and public sector purchasers. TReDS platforms will provide a marketplace where financiers and investors can bid to purchase receivables, reducing dependency on traditional bank lending. Faster conversion of invoices into cash is intended to ease working capital constraints and to lower the cost of short term credit for suppliers.

The policy also aims to broaden access to formal credit for firms that are currently reliant on informal financing arrangements. Implementation will rely on strengthened regulatory oversight of TReDS operators and on wider onboarding of buyers and sellers onto digital platforms. Regulators will monitor compliance and will work with industry bodies to ensure interoperability between systems and to reduce onboarding friction.

The mandate will require changes in corporate procurement practices and in internal payment cycles for large buyers to align with electronic settlement processes. The government will provide guidance and support measures to help smaller firms adopt digital invoice financing and to streamline registration on TReDS platforms. Broader uptake of TReDS is intended to accelerate the formalisation of supply chains and to smooth cash flows across tiers of suppliers.

The government has announced a mandate to expand the use of the Trade Receivables Discounting System, TReDS, to accelerate payments to micro, small and medium enterprises. The measure is designed to shorten receivable cycles and to strengthen liquidity for suppliers across sectors. Under the proposal, buyers and financiers will route eligible invoices through registered TReDS platforms so that invoices can be discounted and settled faster than under conventional payment terms. The rule is intended to make cash conversion more predictable for smaller firms that often face long payment delays from larger corporates and public sector purchasers. TReDS platforms will provide a marketplace where financiers and investors can bid to purchase receivables, reducing dependency on traditional bank lending. Faster conversion of invoices into cash is intended to ease working capital constraints and to lower the cost of short term credit for suppliers. The policy also aims to broaden access to formal credit for firms that are currently reliant on informal financing arrangements. Implementation will rely on strengthened regulatory oversight of TReDS operators and on wider onboarding of buyers and sellers onto digital platforms. Regulators will monitor compliance and will work with industry bodies to ensure interoperability between systems and to reduce onboarding friction. The mandate will require changes in corporate procurement practices and in internal payment cycles for large buyers to align with electronic settlement processes. The government will provide guidance and support measures to help smaller firms adopt digital invoice financing and to streamline registration on TReDS platforms. Broader uptake of TReDS is intended to accelerate the formalisation of supply chains and to smooth cash flows across tiers of suppliers.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement