RBI issues draft guidelines on Trade Receivables Discounting System (TReDS)
With a view to facilitate the financing requirements of Micro, Small & Medium Enterprises (MSME), the Reserve Bank of India (RBI) has prepared the draft guidelines for setting up and operating the institutional mechanism known as the Trade Receivables Discounting System (TReDS). The objective of the TReDS is to facilitate financing of invoices / bills of MSMEs drawn on corporate buyers by way of discounting by financiers. The draft guidelines outline the requirements and the basic tenets of operating the receivables discounting system, and also stipulate the eligibility criteria for entities keen of setting up and operating such a system. MSME sellers, corporate buyers and financiers – both banks and non-bank (NBFC factors) will be direct participants in the TReDS. The TReDS will provide the platform to bring these participants together for facilitating uploading, accepting, discounting, trading and settlement of the invoices / bills of MSMEs.
The Reserve Bank of India is seeking comments from the public/stakeholders on the draft guidelines forimplementation of Trade Receivables Discounting System (TReDS) in India on or before August 08, 2014.
No comments:
Post a Comment