New Delhi, July 6 -- The Ministry of Micro, Small and Medium Enterprises (MSMEs) on June 30 mandated all operational Central Public Sector Enterprises (CPSEs) to settle invoices for goods and services procured from MSMEs through Trade Receivables Discounting System (TReDS) platforms authorised by the Reserve Bank of India (RBI), with the notification taking effect the same day.

The mandate, issued under Sections 9 and 10 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, requires CPSEs to route MSME invoice settlements through any RBI-authorised TReDS platform, though it does not compel MSME suppliers to discount or finance their receivables on the platform - that remains optional.

Key Provisions

Under the notifi...