The Reserve Bank of India (RBI) has made a significant regulatory change by removing due diligence requirements for onboarding onto the Trade Receivables Discounting System (TReDS) platform. This decision is expected to improve credit access for micro, small, and medium enterprises (MSMEs) that are currently facing challenges in their working capital cycles due to global economic disruptions. Ajay Kumar Srivastava, managing director and CEO of Indian Overseas Bank, emphasized that this change will enhance liquidity and efficiency for small businesses. Additionally, the RBI has released revised draft guidelines aimed at streamlining capital requirements and simplifying the onboarding process for MSME sellers. The changes also allow financiers to access credit guarantee covers for their exposures on the platform. The timing of these changes is crucial, as MSMEs, especially those linked to exports and supply chains, are experiencing increased volatility in their working capital cycles. The Union budget has further mandated TReDS as the transaction settlement platform for public sector units purchasing from MSMEs, alongside a credit guarantee support mechanism for invoice discounting. Currently, nearly ₹8.1 lakh crore remains locked in delayed payments to MSMEs, highlighting the urgent need for these reforms. Overall, the MSME sector's funding requirement is projected to grow to ₹162.92 lakh crore by 2030 from ₹50 lakh crore at the end of 2025.