MSME Development (Amendment) Bill, 2026 Proposes Mandatory TReDS-Based Payments for CPSEs

Key facts

• The Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill, 2026 was introduced in the Rajya Sabha on July 28, 2026.
• The Bill proposes a national digital platform for free and voluntary MSME registration.
• Central Public Sector Enterprises (CPSEs) will be required to route invoice settlements for MSMEs through the Trade Receivables Discounting System (TReDS) platform.
• Mediation proceedings before Micro and Small Enterprises Facilitation Councils must be completed within 90 days.
• Arbitration awards must be issued within 90 days from the completion of pleadings.
• Mediated settlement agreements and arbitral awards can be recovered as arrears of land revenue.
• Such awards will constitute a legally enforceable debt and may be recognized under the Insolvency and Bankruptcy Code (IBC).
• State Governments must establish an adequate number of Micro and Small Enterprises Facilitation Councils with necessary infrastructure.
• The Bill introduces reporting obligations for invoices settled through TReDS and penalties for furnishing false information.