The Reserve Bank of India-regulated bill discounting mechanism TReDS for entrepreneurs to unlock working capital tied in their unpaid invoices has registered 1,592 businesses with turnover of more than Rs 500 crore as of May 31, 2021, to facilitate credit to MSMEs, out there information from the MSME Ministry showed. TReDS as a notion was introduced in 2014 by the central bank although later in 2017, 3 platforms which includes M1Xchange promoted by Mynd Solutions, Invoicemart (joint venture of Axis Bank and mjunction services), and RXIL (joint venture among SIDBI and NSE) have been issued licenses to operate on TReDS mechanism. According to a statement by Finance Ministry, the quantity of businesses registered had improved 4.8x from 329 as of January 31, 2021.
“A list of 4599 companies having turnover of more than Rs 500 Crore was identified by the Ministry of Corporate Affairs. After filtering out companies that are registered on TReDS and which are central govt. companies, so far 1592 companies have registered themselves on the TReDS portal,” the MSME Ministry mentioned in the update shared on MSME Dashboard. Moreover, the Department of Public Enterprises – the nodal division for all central public sector enterprises (CPSEs) — has communicated to all CPSEs relating to the onboarding of CPSEs on TReDS platform although 170 CPSEs have currently boarded TReDS.
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The government had last year waived the charges for on-boarding the TReDS platforms till March 31, 2021, this year to support MSMEs list bills without the need of any charge. MSMEs earlier had to spend the on-boarding charge of Rs 10,000 to the concerned exchange portion of the TReDS mechanism. The MSME Ministry had also integrated the Udyam Registration portal with TReDS and GeM for ease of performing organization for MSMEs.
Post launch of the delayed payment monitoring portal MSME Samadhaan in October 2017, 26,981 complaints have been filed by MSMEs involving Rs 9,626 crore so far. Of this, 7,040 circumstances involving Rs 1,287 crore have been disposed. As per the MSMED Act, 2006, the purchaser is liable to spend compound interest with the month-to-month interest to the supplier on the quantity at 3 instances the bank price notified by RBI in case he/she fails to spend the supplier inside 45 days of the acceptance of the goods or service.