The Small Industries Development Bank of India (SIDBI) has been promoting the trade receivables discounting system (TReDS) in addressing the gaps in the micro, small and medium enterprise (MSME) ecosystem.
TReDS is an automated system driven platform that enables MSMEs to auction their trade receivables at competitive market interest rates through a transparent bidding process in which multiple financiers will participate. The main objective of the TReDS platform is to address the critical needs of MSMEs, i.e., the twin issues of promptly encashing receivables and eliminating credit risks.
The TReDS platform of Receivables Exchange of India Limited (RXIL) is expected to be a catalyst in the growth of MSMEs by bringing transparency in the business ecosystem. RXIL is promoted by National Stock Exchange of India Limited (NSE), the premier stock exchange in India and Small Industries Development Bank of India (SIDBI), the apex financial institution for promoting and financing MSMEs in India. RXIL will operate the TReDS platform as per TReDS guidelines issued by RBI. RXIL is the first entity to receive approval from RBI to launch India’s first TReDS Exchange. The web-based TReDS platform of RXIL can be accessed by using this link: www.treds.in.