PSUs to Power 70% Surge in TReDS Volumes by 2027

The government's mandate for central public sector enterprises to use the Trade Receivables Discounting System (TReDS) for settling small business invoices is projected to boost volumes by over 70% by FY27. This move aims to standardize payment processes, improve transparency, and support MSME suppliers by integrating TReDS with the GeM portal.

The government's directive for central public sector enterprises to adopt the Trade Receivables Discounting System (TReDS) for settling invoices from small businesses could lead to a significant surge in transaction volumes by over 70% in FY27, according to an industry expert.

Sundeep Mohindru, founder and promoter of M1xchange, stated that mandatory PSU payments through TReDS would greatly expand government business, with next year's industry volumes potentially seeing a 70-80% increase. Currently, the platform accounts for over Rs 3 lakh crore, a third of the industry's transactions.

The policy, introduced in the Union Budget 2026, aims to streamline payment processes across public enterprises and raise awareness among small businesses about early payment benefits via invoice discounting. The integration of the GeM portal with TReDS is anticipated to bolster this growth and create a consolidated digital payment system for MSME and government transactions.

(With inputs from agencies.)