Faster Payments, Stronger MSME: Government Mandates TReDS for Settlement of All MSME Invoices by Central Public Sector Enterprises

The Government has issued a notification dated 30 June 2026 mandating that all operating Central Public Sector Enterprises (CPSEs) settle invoices for goods and services procured from MSMEs through RBI‑regulated Trade Receivables Discounting System (TReDS) platforms. CPSEs must disclose invoice details and obtain a statutory auditor’s certificate of TReDS compliance during their annual audit, enhancing transparency. The move aims to provide collateral‑free, invoice‑financing to MSMEs, improving working‑capital access and positioning CPSEs as role models for timely payments, fulfilling a Union Budget 2026‑27 commitment.