{"id":11833,"date":"2026-04-09T12:13:28","date_gmt":"2026-04-09T06:43:28","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=11833"},"modified":"2026-04-10T11:50:51","modified_gmt":"2026-04-10T06:20:51","slug":"about-trade-receivables-discounting-system-treds-platform","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/about-trade-receivables-discounting-system-treds-platform\/","title":{"rendered":"Trade Receivables Discounting System"},"content":{"rendered":"<h2><b>Trade Receivables Discounting System Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the Reserve Bank of India proposed to drop the due diligence requirement for MSMEs to onboard TReDS platforms to promote ease of doing business for micro, small and medium enterprises.<\/span><\/p>\n<h2><b>About Trade Receivables Discounting System<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">It is an <\/span><b>electronic platform<\/b><span style=\"font-weight: 400;\"> for facilitating the <\/span><b>financing\/discounting of trade receivables<\/b><span style=\"font-weight: 400;\"> of <\/span><b>Micro, Small, and Medium Enterprises<\/b><span style=\"font-weight: 400;\"> (MSMEs) through multiple financiers.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">These receivables can be due <\/span><b>from corporates and other buyers<\/b><span style=\"font-weight: 400;\">, including Government Departments and Public Sector Undertakings (PSUs).<\/span><\/li>\n<li><b>Purpose:<\/b><span style=\"font-weight: 400;\"> To allow <\/span><b>MSME sellers to discount invoices<\/b><span style=\"font-weight: 400;\"> raised against major corporations, which helps them manage their working capital demands. The platform enables MSMEs to receive payments more quickly.<\/span><\/li>\n<li aria-level=\"1\"><b>Participants<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Sellers, buyers, and financiers<\/b><span style=\"font-weight: 400;\"> are the participants on a TReDS platform.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Only MSMEs can participate as sellers in TReDS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Corporates, Government Departments, PSUs, and any other entity can participate as buyers in TReDS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Banks, NBFC \u2013 Factors, and other financial institutions, as permitted by the RBI, can participate as financiers in TReDS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>RBI has not made it compulsory <\/b><span style=\"font-weight: 400;\">for any buyer, seller, or financier to participate in TReDS.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Government has made it compulsory for certain segments of companies to mandatorily register as buyers on the TReDS platform(s).\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.thehindu.com\/business\/rbi-simplifies-treds-onboarding-for-msmes\/article70839404.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trade Receivables Discounting System is an electronic platform for facilitating the financing\/discounting of trade receivables of Micro, Small, and Medium Enterprises (MSMEs) through multiple financiers. <\/p>\n","protected":false},"author":5,"featured_media":97352,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[246,3815,6726,23],"class_list":{"0":"post-11833","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-current-affairs","9":"tag-prelims-pointer","10":"tag-trade-receivables-discounting-system","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/11833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=11833"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/11833\/revisions"}],"predecessor-version":[{"id":97385,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/11833\/revisions\/97385"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/97352"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=11833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=11833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=11833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}