Skip to content
- Electronic platform for facilitating the financing / discounting of trade receivables of MSMEs through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).
- TReDS platform enables registered MSMEs to raise recourse-free financing against their invoices on registered buyers with 24 hours. Only MSMEs can be sellers on TReDS platform.
- Currently, three entities are operating TReDS platforms and two more entities have been granted in-principle authorisation. These entities process about Rs 60,000 crore worth of transactions annually.
- It is an authorised payment system and is regulated by RBI under Payment & Settlement System Act, 2007.
Expanded scope of TReDS
- RBI has expanded the scope of TReDS Platform which will help in further improving cash flows of MSMEs. The changes introduced are:
- Insurance facility will be permitted on TReDS. This will encourage financing/ discounting of payables of buyers irrespective of their credit ratings. This will make number of users of TReDS platform to four MSME sellers, buyers, financiers and insurers.
- All entities/institutions eligible to undertake business under Factoring Regulation Act will be permitted to participate as financiers in TReDS.
- Secondary market operations will be enabled on TReDS platform. This would allow financiers to offload their existing portfolio to other financiers with the same TReDS platform, if required.
