The ministry highlighted the scale of the sector: more than 8.70 crore enterprises are registered on the Udyam platforms, employing over 38 crore people.
Despite that scale, delayed payments remain a major constraint, locking up funds and limiting growth for MSMEs.
Under the new rule, procurement by CPSEs from MSMEs must be recorded and settled via TReDS, an RBI-regulated electronic platform operational since 2017.
The platform enables competitive bidding by multiple financiers—banks and non-bank financiers—so approved invoices can be converted into cash before their due dates through invoice financing.
The ministry highlighted the scale of the sector: more than 8.70 crore enterprises are registered on the Udyam platforms, employing over 38 crore people. Despite that scale, delayed payments remain a major constraint, locking up funds and limiting growth for MSMEs.
Under the new rule, procurement by CPSEs from MSMEs must be recorded and settled via TReDS, an RBI-regulated electronic platform operational since 2017. The platform enables competitive bidding by multiple financiers—banks and non-bank financiers—so approved invoices can be converted into cash before their due dates through invoice financing.
