TReDS Registration Deadline: Firms Rush to Comply

New Delhi, Mar 23 (PTI) Companies with annual turnover of Rs 250 crore are making a beeline to register on Trade Receivables Discounting System (TReDS) platform to comply with MSME ministry's deadline of March 31.

As per the government notification, all companies with a turnover exceeding Rs 250 crore, along with Central Public Sector Enterprises (CPSEs) involved in procurement from MSMEs, are required to register on the TReDS platform by March 31, 2025.

At present, it is mandatory for all CPSEs and companies with turnover of more than Rs 500 crore to get themselves onboarded with TReDS platform.

According to M1xchange director Sundeep Mohindru, there has been a significant surge in onboarding requests following the November 7, 2024 MSME Ministry notification.

"Before the notification, the average number of corporate onboardings per month was around 30 corporates per month. However, this number has more than doubled in the months following the announcement.

"In the first half of FY25, M1xchange witnessed corporate onboardings, with 200 new corporates being onboarded. In the year's second half, the platform has seen 400 corporates onboarding in the last 6 months," he said.

TReDS was introduced by the Reserve Bank in 2015 to address the issue of timely payment to the MSME sector. Over the time it has improved and increasingly ensured timely payment to MSMEs on reasonable terms.

TReDS is a digital platform in India that enables MSMEs to sell their trade receivables to banks and other financial institutions at a discounted rate.

To provide credit facilitation, the Ministry of MSME has signed agreements with the three TReDS Platforms -- M1xchange, Invoice Mart and Receivables Exchange of India Ltd (RXIL) -- and been integrated with Udyam Portal.