TReDS Coverage

Companies with annual turnover of Rs 250 crore are making a beeline to register on Trade Receivables Discounting System (TReDS) platform to comply with MSME ministry's deadline of March 31. As per the government notification, all companies with a turnover exceeding Rs 250 crore, along with Central Public Sector Enterprises (CPSEs) involved in procurement from MSMEs, are required to register on the TReDS platform by March 31, 2025. At present, it is mandatory for all CPSEs and companies with turnover of more than Rs 500 crore to get themselves onboarded with TReDS platform. According to M1xchange director Sundeep Mohindru, there has been a significant surge in onboarding requests following the November 7, 2024 MSME Ministry notification. "Before the notification, the average number of corporate onboardings per month was around 30 corporates per month. However, this number has more than doubled in the months following the announcement. "In the first half of FY25, M1xchange witnessed

Trade Receivables Discounting System (TReDS) introduced about a decade ago by the Reserve Bank of India has seen the engineering company's cost of funds drop by 2.5 percentage points

Now the MSMED Act, 2006 mandates that payments must be paid to MSEs within 45 days