{"id":360501,"date":"2026-04-10T17:49:10","date_gmt":"2026-04-10T12:19:10","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=360501"},"modified":"2026-04-10T17:49:10","modified_gmt":"2026-04-10T12:19:10","slug":"trade-receivables-discounting-system-treds","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/trade-receivables-discounting-system-treds\/","title":{"rendered":"Trade Receivables Discounting System (TReDS)"},"content":{"rendered":"<p><strong>News:<\/strong> Recently, Reserve Bank of India proposed removing due diligence for MSMEs onboarding on TReDS to promote ease of doing business.<\/p>\n<h2>About Trade Receivables Discounting System (TReDS)<\/h2>\n<figure id=\"attachment_360511\" aria-describedby=\"caption-attachment-360511\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-360511\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/04\/Source-BlueCrest.jpg?resize=300%2C208&#038;ssl=1\" alt=\"Trade Receivables Discounting System (TReDS)\" width=\"300\" height=\"208\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/04\/Source-BlueCrest.jpg?resize=300%2C208&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/04\/Source-BlueCrest.jpg?w=542&amp;ssl=1 542w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-360511\" class=\"wp-caption-text\">Source &#8211; BlueCrest<\/figcaption><\/figure>\n<ul>\n<li>It is an <strong>electronic platform<\/strong> that facilitates financing or discounting of MSME trade receivables through multiple financiers.<\/li>\n<li><strong>Launched by:<\/strong> It was <strong>launched by the Reserve Bank of India.<\/strong><\/li>\n<li><strong>Launched in:<\/strong> It was <strong>introduced in 2014<\/strong> and later strengthened in 2018.<\/li>\n<li><strong>Aim<\/strong>: It aims to <strong>allow MSMEs to discount invoices<\/strong> raised against buyers and <strong>receive faster payments<\/strong> to meet their working capital needs.<\/li>\n<li><strong>Participants<\/strong>:\n<ul>\n<li><strong>Sellers<\/strong>: Only MSMEs can participate as sellers.<\/li>\n<li><strong>Buyers<\/strong>: Corporates, Government Departments, and PSUs can participate.<\/li>\n<li><strong>Financiers<\/strong>: Banks, NBFC-Factors, and other permitted financial institutions.<\/li>\n<li><strong>Insurers<\/strong>: They are allowed to insure receivables or invoices.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Mechanism<\/strong>: MSMEs upload invoices on the platform, and financiers discount them based on buyer creditworthiness, providing funds without collateral.<\/li>\n<li><strong>TReDS platforms:<\/strong> <strong>RXIL (Receivables Exchange of India), M1xchange (Mynd Solutions) and Invoicemart<\/strong> are the main platforms operating in India.<\/li>\n<li><strong>Key features:<\/strong>\n<ul>\n<li><strong>Collateral-free financing:<\/strong> MSMEs receive funds without providing security, which improves credit access.<\/li>\n<li><strong>Digital and fast process:<\/strong> It ensures quicker payments and reduces delays in receivables realization.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Significance<\/strong>: It enhances credit access, liquidity, and ease of doing business for MSMEs, supporting their participation and economic contribution.<\/li>\n<\/ul>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: Recently, Reserve Bank of India proposed removing due diligence for MSMEs onboarding on TReDS to promote ease of doing business. About Trade Receivables Discounting System (TReDS) It is an electronic platform that facilitates financing or discounting of MSME trade receivables through multiple financiers. Launched by: It was launched by the Reserve Bank of India.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/trade-receivables-discounting-system-treds\/\">Continue reading <span class=\"screen-reader-text\">Trade Receivables Discounting System (TReDS)<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-360501","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/360501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=360501"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/360501\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=360501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=360501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=360501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}