What’s new?
CGTMSE guarantee cover is now available for eligible MSE invoice discounting on M1xchange, RXIL and DTX (KredX), following the Union Budget 2026–27 announcement.
Why it matters for MSMEs
The integration allows financiers to obtain CGTMSE cover digitally, helping reduce credit risk and potentially improve timely access to working capital through invoice discounting.
Key numbers
- 75% — guarantee cover of the amount in default
- ₹10 crore — maximum exposure for an MSE buyer, on a revolving basis
- ₹2 crore — maximum exposure for an MSE seller, on a revolving basis
Who is eligible?
Under the provision described by the Ministry, both the buyer and seller must be Micro or Small Enterprises (MSEs).
The takeaway:
CGTMSE + TReDS = an additional credit-risk support mechanism for eligible MSE receivables, aimed at improving working-capital access and addressing delayed payments.
Reference: Press Information Bureau Release
