New Delhi, July 10 -- Centre has mandated the payments to Micro, Small and Medium Enterprises (MSMEs) through the Trade Receivables Discounting System (TReDS) by all operating Central Public Sector Enterprises (CPSEs) for the settlement of transactions with their MSME suppliers.
With every CPSE invoice flowing through TReDS, MSME suppliers have the option to convert approved invoices into cash well before the due date.
Financing on TReDS is collateral-free and without recourse to the seller, with banks and NBFCs bidding competitively to discount invoices, giving MSMEs working capital within a short span of time at competitive rates of interest.
MSMEs are the backbone of the Indian economy, with over 8.70 crore enterprises registered on t...