Companies Race to Meet TReDS (Trade Receivables Discounting System) Registration Deadline as March 31 Approaches

Companies with turnover exceeding ₹250 crore are rushing to register on the Trade Receivables Discounting System (TReDS) platforms before the March 31, 2025 deadline. This mandatory registration, announced by the government in November 2024, aims to improve cash flow for MSMEs by facilitating faster payments. The initiative expands on the previous requirement for companies with ₹500 crore+ turnover and CPSEs to register. TReDS platforms like RXIL, M1xchange, and Invoicemart enable MSMEs to convert trade receivables into liquid funds, addressing delayed payment issues. Companies must complete the registration process, including KYC requirements and system integration, to ensure compliance and support a more inclusive financial ecosystem for MSMEs.

 

Source: The Week