Trade Receivables Discounting System (TReDS)
TReDS is a digital platform established and regulated by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007, to facilitate the financing of trade receivables of MSMEs from corporates (buyers) and government entities through multiple financiers. It operates on a competitive auction mechanism: MSMEs upload invoices, buyers confirm them, and registered financiers bid for the receivables — the MSME selects the best offer and receives immediate payment, while the buyer settles with the financier at invoice maturity. Critically, TReDS transactions are structured "without recourse," meaning the MSME bears no liability if the buyer defaults.
- RBI authorises TReDS platforms under the Payment and Settlement Systems Act, 2007.
- Three licensed TReDS platforms operate in India: RXIL (Receivables Exchange of India Ltd), M1xchange, and C2treds.
- Companies with turnover exceeding ₹250 crore and all Central Public Sector Enterprises (CPSEs) are mandated to register on TReDS platforms.
- TReDS enables invoice discounting at competitive rates determined by financier bidding — distinct from traditional bank-led supply chain financing.
● Tracked since April 08, 2026 · last seen August 03, 2026 · updates as the daily brief publishes