The MSME Ministry has lowered the turnover limit for businesses to access the TReDS platform. Businesses with over Rs 250 crore turnover and CPSEs must now use this platform. This move aims to enhance timely financing options for MSMEs and boost their financial stability. The deadline for onboarding is the end of this financial year.
Recently, the MSME Ministry has notified that the businesses with more than Rs 250 crore turnover will now be required to onboard the invoice discounting by the (RBI).
This will be to all the central public sector enterprises (CPSEs) as well. Notably, earlier, the limit for the businesses was Rs 500 crore.
As per the notification, the onboarding process on the TReDS platform is to be completed by the end of this financial year.
In this year’s Annual Budget, Finance Minister Nirmala Sitharaman announced that the turnover criteria for buyers to get on TReDS have been reduced to Rs 250 crore from Rs 500 crore.
The notification by the MSME Ministry is with reference to the announcement made by the Finance Minister. She had said that this would lead to the onboarding of 22 more CPSEs and 7,000 more companies on TReDS.
The minister also announced that medium enterprises, with turnover between Rs 50 crore and Rs 250 crore, will also be included in the scope of the suppliers.
Expands access to timely financing options
Speaking on the development, Sundeep Mohindru, Founder & Director, M1xchange said, “With outstanding MSME dues exceeding ₹21,000 crore, as reported on the Samadhan Portal, this requirement expands access to timely, structured financing options, facilitating prompt payments for MSME goods and services.”