TReDS coverage must be expanded beyond top-rated corporate buyers: Crisil

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

The government has announced measures in the Union Budget for 2018-19 to strengthen the Trade Electronic Receivable Discounting System (TReDS) platform, which would enable micro, small and medium enterprises (MSMEs) to discount their receivables. 

But most of the bills discounted are drawn on large, top-rated corporate buyers and not MSME buyers.

Facilitating the latter is necessary because the latest Economic Survey shows that more than two-thirds of the sales transactions are between MSMEs themselves. And that number would rise further, based on the revised definition of MSMEs announced after the Survey.

Now the MSMED Act, 2006 mandates that payments must be paid to