Ministry of MSME mandates TReDS Onboarding for Large Companies by March 2025 [Read Notification]
This move will help improve MSME financing by improved access to liquidity and ensuring timely payments to small and medium businesses
Ministry – MSME – TReDS Onboarding – Large Companies – taxscan
Ministry – MSME – TReDS Onboarding – Large Companies – taxscan
The Ministry of Micro, Small, and Medium Enterprises (MSME) has issued a notification requiring all companies with a turnover exceeding ₹250 crore and all Central Public Sector Enterprises to register on the Trade Receivables Discounting System (TReDS) platforms by March 31, 2025.
This move will help improve MSME financing by improved access to liquidity and ensuring timely payments to small and medium businesses.
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The notification was issued on November 7, 2024, under Section 9 of the MSME Development Act, 2006, and supersedes earlier notifications from November 2018. This regulatory push seeks to address the challenges MSMEs face due to delayed payments from larger entities, a factor that has long hindered the growth of this sector.
The TReDS platform, created under the guidelines of the Reserve Bank of India, facilitates discounted payments for receivables, enabling MSMEs to convert their receivables into liquidity without waiting for credit terms to lapse.
To Read the full text of the Notification CLICK HERE
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