New Delhi, Feb 17 (KNN) Chennai based Public Sector Indian Overseas Bank joined the Trade Receivables Discounting System (TReDS) platform, provided by Receivables Exchange of India Limited (RXIL), to accelerate the credit flow to the Micro, Small and Medium Enterprises (MSME) sector.

TReDS is a digital platform to help MSMEs to get their trade receivables financed at a competitive rates through an auction mechanism. This will allow MSMEs to have easy and hassle free access to finance and prompt realization of their receivables.

Earlier, during the Part 1 of the budget session earlier this month, Finance Minister Arun Jaitley hinted towards mandating the public sector banks to start functioning on TReDS.

It is proposed to onboard public sector banks and corporates on Trade Electronic Receivable Discounting System (TReDS) platform and link this with GSTN, Jaitley said during his budget speech in the parliament. (With Inputs from a media report) (KNN/DA)