Ministry Of Micro, Small And Medium Enterprises vide its notification had mandated all companies registered under the Companies Act, 2013 with a turnover of more than Rs. 250 crore (two hundred and fifty crore rupees) and all Central Public Sector Enterprises (CPSEs) shall be required to get themselves onboarded on the Trade Receivables Discounting System platforms (TReDS*), set up as per the notification of the Reserve Bank of India.
*TReDS is an electronic platform for online discounting of bills of MSMEs for supplies to large Corporates. It addresses the issue of delayed payments to MSMEs.
Analysis of bringing Notification:
The registration of such large corporates and institutions on TReDS Platforms benefits the MSMEs suppliers in various way such as:
- securing financial assistance digitally at competitive terms and without any collateral security, based on the invoices / bills for supplies to large corporates;
- improves the liquidity for MSMEs resulting in better cashflow management;.
- Reduced waiting times for payment realization;
- Decreased dependency on traditional methods of financing.
Therefore in the interest of the MSMEs suppliers the Ministry has mandated the Compulsory registration of notified large Corporates and CPSEs by 31st March 2025
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