New Delhi, July 10 -- Manas Pimpalkhare

New Delhi: The government on Friday made it compulsory for central public sector enterprises (CPSEs) to pay their micro, small and medium enterprise (MSME) suppliers through Reserve Bank of India-approved Trade Receivables Discounting System (TReDS) platforms, strengthening efforts to curb chronic payment delays and improve access to working capital for small businesses.

The notification issued by the MSME ministry gives effect to a proposal announced in the Union Budget for 2026-27. The ministry said the move is expected to make CPSEs "role models" for payment discipline among large corporate buyers.

Detailing the compliance loop, the ministry said: "CPSEs shall disclose details of MSME invoices...