New Delhi, April 11 -- The Centre is exploring the extension of the Trade Receivables Discounting System (TReDS) to defence procurement in a move aimed at improving payment cycles for micro, small and medium enterprises (MSMEs).

Move To Ease MSME Payment Delays

The proposal seeks to integrate defence procurement transactions with TReDS platforms, enabling MSMEs supplying to defence public sector units and government departments to access faster invoice financing, reported by Business Standard.

TReDS, introduced by the Reserve Bank of India, facilitates the discounting of trade receivables of MSMEs through a transparent online mechanism involving multiple financiers.

Extending the platform to defence procurement is expected to address ...