The Economic Times RiseDec 28, 2021Setback for MSMEs, state-run companies hesitant of adopting TReDS despite govt diktatThe government’s move to get public sector companies on the Trade Receivables Discounting System (TReDS) — a central bank-backed invoice discounting regime — to improve liquidity with small businesses has made little headway with many state-run firms yet to conduct a single transaction on these platforms.As per data accessed by ET, of the total transaction volume of about Rs 36,000 crore conducted by the three TReDS exchanges in India so far, only Rs 2,700 crore was from central public-sector enterprises.At the heart of the problem is the pace at which CPSEs approve invoices, said Sundeep Mohindru, the chief executive officer of M1Xchange, a TReDS platform. These companies often take 45-60 days to approve invoices. By this time, the CPSEs also usually settle the payment.Read more at The Economic Times Rise
The government’s move to get public sector companies on the Trade Receivables Discounting System (TReDS) — a central bank-backed invoice discounting regime — to improve liquidity with small businesses has made little headway with many state-run firms yet to conduct a single transaction on these platforms.As per data accessed by ET, of the total transaction volume of about Rs 36,000 crore conducted by the three TReDS exchanges in India so far, only Rs 2,700 crore was from central public-sector enterprises.At the heart of the problem is the pace at which CPSEs approve invoices, said Sundeep Mohindru, the chief executive officer of M1Xchange, a TReDS platform. These companies often take 45-60 days to approve invoices. By this time, the CPSEs also usually settle the payment.Read more at The Economic Times Rise
