UPSC economy: MSME finance and trade receivables discounting system (TReDS)
IAS/CSE Aspirants, 🔖 this post 🏦 UPSC 2027 Economy–MSME Finance Focus: Trade Receivables Discounting System (TReDS) ➡️ Definition :- Electronic platform that enables MSMEs to convert trade receivables (invoices) into immediate cash by discounting them through financiers ➡️ Regulator :- Regulated by the Reserve Bank of India; operational platforms include RXIL, M1xchange, Invoicemart and C2FO Factoring Solutions ➡️ Participants :- MSME sellers, corporate buyers, government entities and financiers (banks/NBFCs/factoring companies) ➡️ Significance :- Improves MSME liquidity, reduces payment delays, lowers working-capital constraints and promotes formalisation of credit markets
Pratiksha Rathi · 4mo ago
Thank you for this