India’s first TReDS (Trade Receivables Discounting System) exchange goes Live!
Brief Background: In the Union Budget for 2015-16 the Honourable Union Finance Minister had highlighted the need for and use of TReDS for improving flow of funds to MSME sector by reducing the receivables realisation cycles. TReDS are structured to allow SMEs to post their receivables on the system and get them financed. TReDS is not only expected to give SMEs greater access to finance but also put greater discipline on Corporates to pay their dues on time. In December 2014, Reserve Bank of India released the “Guidelines for setting up of and operating the Trade Receivables Discounting System (TReDS)” The guidelines also had a ‘Illustrative Outline of Process flow under TReDS’. As TReDS is a Payment Sy...