TReDS
Trade Receivables Discounting System
TReDS is an electronic, RBI-regulated platform that allows MSMEs to convert unpaid invoices (receivables) owed by large buyers, including Central Public Sector Enterprises, into immediate working capital by auctioning them to financiers/banks at a discount. It was conceived to address the chronic delayed-payment problem MSMEs face with larger corporate and government buyers, without the MSME having to wait out long payment cycles.
- TReDS was launched under an RBI framework in 2018; currently five platforms are operational — RXIL, M1xchange, Invoicemart, C2treds, and DTX.
- TReDS transactions are "without recourse" — once a financier discounts the invoice, the MSME supplier is not liable if the buyer subsequently defaults.
- A June 2026 notification made TReDS registration mandatory for all Central Public Sector Enterprises for their MSME procurement, and companies with turnover above ₹250 crore are required to register on TReDS platforms.
- Invoice discounting volumes on TReDS rose sharply, from about ₹40,000 crore in FY22 to roughly ₹3.47 lakh crore in FY26, reflecting rapid scale-up of the mechanism.
● Tracked since June 23, 2026 · last seen August 08, 2026 · updates as the daily brief publishes
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