New Delhi, July 10 -- The Ministry of Micro, Small and Medium Enterprises (MSME) has mandated all operating Central Public Sector Enterprises (CPSEs) to settle invoices of MSME suppliers through the Trade Receivables Discounting System (TReDS), a move aimed at ensuring faster payments and improving access to collateral-free working capital for small businesses.

The ministry said the notification, issued on June 30, 2026, fulfils a key announcement made in the Union Budget 2026-27 and is expected to address one of the biggest challenges faced by MSMEs--delayed payments.

Under the new framework, all invoices raised by MSMEs on CPSEs will be routed through RBI-authorised TReDS platforms, allowing suppliers to receive financing against appr...