KredX, a supply chain finance platform, has received final approval from the Reserve Bank of India (RBI) to commercially launch its Trade Receivables Discounting System (TReDS) platform, branded as DTX (Domestic Trade Exchange). This makes KredX the fifth RBI-regulated TReDS platform in India..
What is TReDS?
- The Trade Receivables Discounting System (TReDS) is an electronic platform designed for the online discounting of trade receivables, enabling MSMEs to address the challenge of delayed payments from large corporates.
Key features of TReDS include:
- Invoice/Bill Discounting: MSMEs can digitally discount their invoices for supplies to large corporations.
- Collateral-Free Financing: Financial assistance is provided without the need for collateral.
- Improved Liquidity: This system enhances cash flow management for MSMEs by providing timely payments.
- Competitive Financing Terms: MSMEs can access funds at favorable rates.
Other Operational TReDS Platforms Registered with RBI:
- M1xchange
- Invoicemart
- Receivables Exchange of India Ltd (RXIL):
- Operated as a joint venture between SIDBI (Small Industries Development Bank of India) and the NSE (National Stock Exchange).
