Module: General Practice
Q37: As per the Ministry of MSME notification and the subsequent amendments effective from 2025, the mandatory turnover threshold for companies to onboard the Trade Receivables Discounting System (TReDS) platform was revised. What is the new annual turnover limit above which companies are legally required to register on TReDS?
✅ Correct Answer: B
The new mandatory limit is Above 250 Crore rupees.
Under the Payment and Settlement Systems Act and MSME directions, companies with an annual turnover exceeding 250 Crore rupees must register on TReDS platforms (like RXIL, M1xchange). Previously, this mandatory limit was 500 Crore rupees.
The reduction brings more corporate buyers into the system, ensuring that MSME suppliers can discount their invoices and manage cash flows more effectively.
The notification mandated compliance by March 31, 2025.
Under the Payment and Settlement Systems Act and MSME directions, companies with an annual turnover exceeding 250 Crore rupees must register on TReDS platforms (like RXIL, M1xchange). Previously, this mandatory limit was 500 Crore rupees.
The reduction brings more corporate buyers into the system, ensuring that MSME suppliers can discount their invoices and manage cash flows more effectively.
The notification mandated compliance by March 31, 2025.