Firms with Rs 250-cr turnover rush to register on TReDS as March 31 deadline nears, ET BFSI

Firms with annual turnover of Rs 250 crore are making a beeline to register on Trade Receivables Discounting System (TReDS) platform to adjust to MSME ministry’s deadline of March 31. As per the federal government notification, all corporations with a turnover exceeding Rs 250 crore, together with Central Public Sector Enterprises (CPSEs) concerned in procurement from MSMEs, are required to register on the TReDS platform by March 31, 2025.

At current, it’s necessary for all CPSEs and firms with turnover of greater than Rs 500 crore to get themselves onboarded with TReDS platform.

In keeping with M1xchange director Sundeep Mohindru, there was a major surge in onboarding requests following the November 7, 2024 MSME Ministry notification.

“Earlier than the notification, the common variety of company onboardings per thirty days was round 30 corporates per thirty days. Nevertheless, this quantity has greater than doubled within the months following the announcement.

“Within the first half of FY25, M1xchange witnessed company onboardings, with 200 new corporates being onboarded. Within the 12 months’s second half, the platform has seen 400 corporates onboarding within the final 6 months,” he stated.

TReDS was launched by the Reserve Financial institution in 2015 to handle the problem of well timed cost to the MSME sector. Over the time it has improved and more and more ensured well timed cost to MSMEs on cheap phrases.

TReDS is a digital platform in India that allows MSMEs to promote their commerce receivables to banks and different monetary establishments at a reduced price.

To offer credit score facilitation, the Ministry of MSME has signed agreements with the three TReDS Platforms — M1xchange, Bill Mart and Receivables Change of India Ltd (RXIL) — and been built-in with Udyam Portal.