Parliament Question: Trade Receivables Discounting System

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 714 TO BE ANSWERED ON 23.07.2026 TRADE RECEIVABLES DISCOUNTING SYSTEM 714. DR. BHOLA SINGH: SHRI RAMESH AWASTHI: SHRI KHAGEN MURMU: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the progress made in the implementation of the Trade Receivables Discounting System (TReDS) reforms announced in the Budget 2026–27; (b) whether procurement by Central Public Sector Enterprises is being routed through TReDS and if so, the details thereof; (c) the status of integration of TReDS with the Government e-Marketplace (GeM) and implementation of credit guarantee support; and (d) the impact on timely payments and the availability of working capital for Micro, Small and Medium Enterprises (MSMEs)? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a): In compliance to para 30(i) of the Budget Announcement 2026-27, Ministry of Micro, Small and Medium Enterprises (MSME), has issued a notification on June 30, 2026 vide S.O. 3507(E) mandating all the CPSEs to onboard on any one of the TReDS platform. (b): As informed by RBI and TReDS platforms, there has been considerable traction amongst Central Public Sector Enterprises (CPSEs) to onboard their suppliers onto TReDS platform, specifically post the issuance of Gazette Notification dated June 30, 2026 vide S.O. 3507 (E) by Ministry of MSME. (c): As per Government e-Marketplace (GeM), GeM's integration with all five TReDS platforms is now live. Furthermore, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has issued Circular No. 262/2026-27, dated June 15, 2026, notifying special provisions for credit facilities on TReDS under Credit Guarantee Scheme. (d): As informed by TReDS Platforms, the new reforms and regulatory developments are likely to bring a positive impact on MSMEs and TReDS A higher participation of MSMEs through smooth onboarding process and also streamline the payments to MSMEs by facilitating and leveraging the TReDS ecosystem for working capital requirements is expected. ****