Giving a major boost to the Indian supply chain financing ecosystem for small businesses, the union government has proposed making the use of the RBI-run Treds (Trade Receivable Discounting System) platform mandatory for all purchases by central public sector enterprises from small and medium enterprises.

Industry insiders said this has the potential of unlocking $60 billion worth of transactions flowing through the platform. The current volumes on Treds hover around $4 billion, they said.

Treds is a platform run by the central bank, enabling suppliers and vendors to access financing against their receivables on the bills they raise against their clients.

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“Treds will shift from an optional fintech platform to system-level financial infrastructure—enforcing payment discipline, improving MSME pricing and creating deep secondary market liquidity,” said Anurag Jain, cofounder, KredX, a Treds registered platform.

The government has also announced its plans to offer a credit support mechanism through CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) for invoice discounting on the Treds platform, which will also boost financing available on the network.

“...Link GeM (Government-emarketplace) with TReDS for sharing information with financiers about government purchases from MSMEs, encouraging cheaper and quicker financing,” the finance minister told Parliament during the presentation of the union budget for FY2027.