CURRENT AFFAIRS

Detailed explanation-1: -The objective of the TReDS is to enable financing of invoices/bills of MSMEs, drawn on corporate and other buyers, including PSUs and the government departments, by way of discounting by financiers. The aim behind this was to cut down time taken for sellers to receive payments.

Detailed explanation-2: -Trade Receivables Discounting System (TReDS) is a digital platform for MSMEs to auction their trade receivables at competitive rates through online bidding by Financiers i.e Banks.

Detailed explanation-3: -TReDS simplifies uploading, accepting, discounting, trading and settling invoices/bills of MSMEs. TReDS can manage both receivables and reverse factoring, enabling larger transaction volumes and better pricing.

Detailed explanation-4: -RXIL operates the Trade Receivables Discounting System (TReDS) Platform as per the TReDS guideline issued by Reserve Bank of India (RBI) on December 3, 2014. RXIL is the first entity to receive the approval from RBI on December 01, 2016 to launch India’s First TReDS Exchange.

Detailed explanation-5: -RXIL (a joint venture of NSE and SIDBI) Mynd Solution’s M1Xchange. Invoice Mart (owned by A TReDS Limited – a joint venture between Axis Bank and mjunction services) 28-Sept-2022