MoS Finance Karad invites stakeholders and MSME sector to discuss mismanagement of TReDS by PSUs

New Delhi, Jan 20 (KNN) Stakeholders have been called up by the Central government to discuss about the poor uptake of the electronic invoice discounting platform TReDS (Trade Receivables Discounting System) by public sector undertakings (PSUs).

The Minister of State for Finance Dr Bhagwat Kishanrao Karad has invited MVIRDC WTC Mumbai and the MSME industry to submit a detailed representation on these issues. 

“We can discuss this with concerned government department and address them,” he said. 

He was speaking at a webinar after releasing a study titled “Enhancing MSME Competitiveness through Digital Modes of Financing” by MVIRDC World Trade Center Mumbai, a trade facilitating body.

It highlighted the need for digitalisation of MSME businesses to bridge their unmet credit needs, who contribute 30 per cent to India’s GDP, 45 per cent to manufacturing and 48 per cent to merchandise exports of India.

Additional suggestions included encouraging reverse factoring, revising capital adequacy norms for banks’ TReDS exposure to new customers, increasing the permissible credit limit that can be disbursed based on Aadhar eKYC and increasing eMandate limit under UPI to enable seamless collections for small-ticket loans.