Budget 2026: PSUs Mandated to Use TReDS for MSME Payments

India's Finance Minister Nirmala Sitharaman waves as she holds a red folder bearing the Government of India's emblem, while posing with her officials before leaving her office to present the annual federal budget in parliament, in New Delhi, India, February 1, 2026. REUTERS/Altaf Hussain TPX IMAGES OF THE DAY

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CNBC TV18•01-02-2026, 11:32

Budget 2026: PSUs Mandated to Use TReDS for MSME Payments

•Finance Minister Nirmala Sitharaman announced in Budget 2026 that Public Sector Undertakings (PSUs) must use the Trade Receivables Discounting System (TReDS) platform to pay Micro, Small, and Medium Enterprises (MSMEs).
•TReDS, established in 2014, allows MSMEs to discount bills from large companies via an auction mechanism, ensuring prompt payments at competitive rates.
•The mandatory use of TReDS aims to further reduce payment delays for MSMEs.
•The platform's growing popularity has already led to a reduction in delayed payments to ₹7.34 lakh crore by March 2024, down from ₹10.7 lakh crore in 2022.

Why It Matters: PSUs are now required to use the TReDS platform for MSME payments, aiming to reduce payment delays.

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