TReDS Mandatory Registration: ₹250 Crore Turnover Threshold in 2026
The RBI TReDS Directions 2026 lower the mandatory registration threshold from ₹500 crore to ₹250 crore turnover. All CPSEs must also route MSME settlements through TReDS. Here's what corporate anchor buyers must do to comply.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: RBI Trade Receivables Discounting System (TReDS-onboarding)) Directions, 2026 (Master Direction consolidating earlier TReDS framework) — Effective: 2026. Source: RBI official circulars and MCA notifications. Last reviewed by CA Harun Raaj: January 2026.
India's MSME payment infrastructure just became significantly more accessible — and for companies with annual turnover above ₹250 crore, compliance is no longer optional.
The Reserve Bank of India's consolidated TReDS Directions, 2026 have reduced the mandatory corporate onboarding threshold from ₹500 crore to ₹250 crore in turnover. Simultaneously, on 30 June 2026, the Ministry of MSME notified that all operational Central Public Sector Enterprises (CPSEs) must route MSME invoice settlements through an RBI-authorised TReDS platform, regardless of turnover size. Together, these changes bring a much larger cohort of Indian companies into the TReDS ecosystem.
What Is TReDS and Why the Threshold Matters
TReDS (Trade Receivables Discounting System) allows MSME suppliers to discount their accepted invoices on a regulated digital platform where competing banks and NBFCs provide financing. The corporate buyer (anchor) uploads and confirms the invoice on the platform; the winning financier credits the MSME seller within T+2 working days.
The buyer's role is to register, accept invoices, and maintain transparent invoice records — the system then handles financing automatically. For this to work, the buyer must be on the platform.
Key point: The threshold halving from ₹500 crore to ₹250 crore means mid-size corporates now have a compliance obligation that was previously limited to larger enterprises.
What Corporate Anchor Buyers Must Do
If your company has annual turnover exceeding ₹250 crore (or you are a CPSE), follow this compliance checklist:
Step 1: Register on at least one RBI-authorised TReDS platform.
Three platforms are currently operational:
- M1xchange (promoted by Axis Bank)
- Invoicemart (promoted by SIDBI and NSE)
- RXIL (promoted by SIDBI and NSE)
Registration requires board or authorised signatory approval, company PAN, GST registration, authorised signatory KYC, and linked bank account details.
Step 2: Maintain invoice data in RBI-prescribed format.
TReDS Directions 2026 require corporate anchors to disclose invoice details in a standardised format on the platform. This creates a transparent audit trail for MSME receivables and supports regulatory oversight.
Step 3 (CPSEs only): Obtain statutory auditor certification.
The June 2026 MSME Ministry notification mandates that CPSEs obtain a certificate from their statutory auditors confirming TReDS platform registration as part of the annual audit process.
Step 4: Communicate the channel to your MSME supplier base.
Once registered, actively inform suppliers about TReDS access and encourage those not yet registered under Udyam to complete registration. This unlocks the full ecosystem benefit.
Key Improvements in TReDS Directions 2026
The consolidated 2026 Directions introduced structural enhancements that strengthen the platform for all participants:
CERSAI registration of assignments: TReDS platforms must file each discounted receivable assignment with CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest). This prevents double-financing of the same invoice across platforms — a systemic risk that existed in the earlier framework.
Simplified MSME seller onboarding: Due diligence burden on platforms for MSME sellers has been removed. Registration now requires only standard KYC (PAN, GST, Udyam registration, bank details), significantly accelerating supplier onboarding.
Credit guarantee access via NCGTC: Financiers can now access NCGTC credit guarantee coverage for their TReDS exposures, reducing risk perception and potentially lowering discount rates for MSME sellers.
Insurance protection for MSMEs: Financiers may use insurance products for TReDS transactions, but insurance premiums cannot be passed to MSME sellers. This protects seller margins while improving financier appetite.
Re-discounting permitted: Financiers can now sell their TReDS exposures to other financiers in secondary markets, improving overall platform liquidity and capital efficiency.
Lower platform net worth requirement: Minimum net worth for new TReDS platform operators reduced from ₹100 crore to ₹25 crore, potentially increasing the number of authorised platforms in the future.
What Happens If You Are Not Compliant
For companies above ₹250 crore turnover (non-CPSE): Non-registration violates the RBI Directions framework. While specific penalty amounts are still being clarified by RBI, statutory auditors are increasingly expected to verify compliance as part of audit procedures. The auditor certification requirement introduced for CPSEs signals broader regulatory attention to this threshold.
For CPSEs specifically: Non-compliance surfaces directly in the annual statutory audit certificate. Given that government auditors (CAG-empanelled firms) mandate this check, non-compliant CPSEs face reputational and regulatory risk and may attract corrective action from their administrative ministry.
Illustrative Scenario
Vaibhav Industries Ltd is a Maharashtra-based manufacturer of industrial chemicals with annual turnover of ₹320 crore, sourcing raw material inputs from 40 MSME suppliers. Under the revised TReDS Directions 2026, Vaibhav is now required to register on a TReDS platform. Once registered, its MSME supplier base can begin discounting invoices at prevailing bank rates. For Vaibhav, the compliance cost is minimal (platform registration is free for buyers); the benefit is a stronger, financially healthier MSME supply chain and alignment with India's MSME payment reform agenda.
Next Steps
If your company has turnover above ₹250 crore or is a CPSE, TReDS registration is now a compliance requirement. Engage your banking relationship team or contact one of the three RBI-authorised platforms directly to initiate registration.
For MSME suppliers looking to maximise cash flow from large corporate and CPSE buyers, TReDS onboarding is now more accessible than ever. I'm CA Harun Raaj, Visakhapatnam. If your company is navigating TReDS compliance, working capital restructuring, or MSME supplier financing strategy, reach out — we advise corporates and MSMEs on the full economics of invoice discounting and receivables management.
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See Also
Frequently Asked Questions
Does TReDS registration apply to LLPs with ₹250+ crore turnover?+
The RBI TReDS Directions 2026 specify "companies registered under the Companies Act, 2013." LLPs are governed by the Limited Liability Partnership Act and are typically not covered by this threshold requirement. However, if you are a CPSE or wish to enable MSME supplier financing, voluntary registration is advisable. Verify applicability with a Chartered Accountant based on your entity structure.
If we are already registered on one TReDS platform, must we re-register?+
No. Existing registrations remain valid under the 2026 Directions. Ensure your authorised signatory KYC is current, your bank account linkage is active, and your supplier base is aware of the TReDS channel. You may also register on additional platforms (M1xchange, Invoicemart, RXIL) to widen financier competition without any restriction.
Does TReDS registration have GST implications for the buyer?+
No. TReDS is a receivables financing mechanism; it does not affect the buyer's GST obligations. Input tax credit and output tax liability remain tied to the underlying procurement transaction, regardless of whether the receivable is discounted on TReDS.
Can we register on multiple TReDS platforms at the same time?+
Yes. Registration on multiple platforms (M1xchange, Invoicemart, RXIL) widens the financier pool available to your MSME suppliers and improves bid competition. There is no restriction on registering with more than one platform simultaneously.
What is the registration cost for corporate anchor buyers?+
TReDS platform registration for corporate anchor buyers is free. There are no upfront or recurring platform fees for buyer participation. Cost efficiency is one of the reasons the RBI has mandated participation for larger corporates and CPSEs.
Do CPSEs face penalties if they do not comply with the June 2026 TReDS mandate?+
The June 2026 Ministry of MSME notification requires CPSEs to route MSME settlements through TReDS and obtain statutory auditor certification. Non-compliance is flagged in the annual audit certificate and reported to the administrative ministry, exposing the CPSE to reputational and regulatory risk.
What information must our MSME suppliers provide to start discounting invoices on TReDS?+
MSME sellers require only standard KYC: PAN, GST registration, Udyam registration, and bank account details. The TReDS Directions 2026 removed earlier onerous due diligence requirements, significantly accelerating supplier onboarding.
Can an MSME invoice be financed on multiple TReDS platforms simultaneously?+
No. Each invoice can be discounted only once. However, CERSAI registration of the assignment (mandated under the 2026 Directions) prevents the same invoice from being double-financed across platforms by creating a centralised registry of all securitised receivables.
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