By Mr. Ketan Gaikwad, MD & CEO, RXIL
”Mandating TReDS as a transaction / settlement platform by CPSEs is a welcome move, as it will not only ensure timely payments and competitive financing rates for MSMEs, but also provide the government with a transparent, system-led view of MSME payment cycles across CPSEs, setting a strong benchmark for other corporates to follow.
The proposed extension of CGTMSE credit guarantee support to invoice discounting on TReDS further deepens the availability of working capital for MSMEs and will enable TReDS platforms to onboard a wider and more diverse MSME base.
Linking the GeM portal with TReDS for sharing information to the financiers will be a major enabler, allowing MSME suppliers access quicker and cheaper financing in a seamless manner, especially when combined with CPSE participation and credit guarantees.
The proposal to introduce trade receivables as asset-backed securities is a forward looking reform that has the potential to unlock additional liquidity by attracting new classes of investors and developing a secondary market for MSME receivables. We look forward to further details on this framework and believe it can meaningfully enhance market depth, liquidity, and settlement efficiency for MSME financing in the years ahead.
By strengthening the digital credit infrastructure and improving capital efficiency across the MSME ecosystem, TReDS emerges as a critical enabler of inclusive growth and a foundational pillar in India’s journey towards Viksit Bharat.”