One of the most important purposes of reducing the threshold of turnover for TReDS from Rs. 500 crores to Rs. 250 crores is that the newer threshold shall enable MSMEs to get onboard with the TReDS platform and avail the tonnes of benefits it has to offer. Besides including MSMEs, the lowered threshold shall also enable various small businesses, corporates, and public sector enterprises to avail the benefits of TReDS platform. Additionally, it shall also widen the scope of the TReD scheme.
A Parliamentary panel researching the effects of Covid-19 on MSMEs recommended in its report delivered to the Rajya Sabha in December 2021, that the registration should be made compulsory for all CPSEs having a turnover of more than Rs 250 crores rather than Rs 500 crores as it would broaden the scope of TReDS.
On a related note, the Indian Government in August 2021 allowed non-banking financial companies to enroll on TReDS platform for discounting the invoices of MSMEs. The purpose of this decision was to ensure liquidity for MSMEs and corporates on the TReDS platform as well.