Finance Minister Proposes Lower Threshold For Treds Platform To Strengthen MSME Liquidity

New Delhi, Jul 23 (KNN) In a move aimed at enhancing liquidity for Micro, Small, and Medium Enterprises (MSMEs), Finance Minister Nirmala Sitharaman has proposed reducing the turnover threshold for mandatory onboarding of buyers on the Trade Receivables Discounting System (TReDS) platform.

The proposal, announced as part of the new budget, would lower the current threshold from Rs 500 crore to Rs 250 crore. This adjustment is expected to significantly expand the platform's reach and impact.

"This measure will bring 22 more Central Public Sector Enterprises (CPSEs) and 7,000 additional companies onto the platform," Sitharaman stated.

She added that medium enterprises would also be included in the scope of suppliers eligible to participate in the TReDS system.

The TReDS platform facilitates MSMEs in converting their trade receivables into cash, thereby unlocking working capital.

This expansion is anticipated to provide a substantial boost to the financial ecosystem supporting smaller businesses in India.

(KNN Bureau)