Rush for TReDS Registration Hits New High as Deadline Looms

Companies with an annual turnover of Rs 250 crore are rushing to register on the Trade Receivables Discounting System (TReDS) to meet the MSME ministry's March 31 deadline. The surge follows a government notification requiring these companies and certain public sector enterprises to register by 2025.

The Trade Receivables Discounting System (TReDS) platform is experiencing an unprecedented influx of registrations as the March 31 deadline set by the MSME ministry approaches. Companies boasting an annual turnover of Rs 250 crore are eager to comply with the mandate.

According to the government's directive, all companies surpassing the Rs 250 crore turnover threshold and Central Public Sector Enterprises (CPSEs) engaged in MSME procurement must be onboard TReDS by March 31, 2025. Currently, the requirement applies to CPSEs and firms exceeding Rs 500 crore in turnover.

Following the MSME Ministry notification on November 7, 2024, M1xchange director Sundeep Mohindru notes a substantial rise in onboarding, with numbers doubling since the announcement. The platform, designed to aid MSMEs by facilitating discounted trade receivables sales, was launched by the Reserve Bank to ensure timely payments to the sector.

(With inputs from agencies.)