Govt to push for more private-public players to opt for TReDS: Rajiv Kumar

New Delhi, Jan 10 (KNN) Eyeing at ensuring speedy payments to the Micro, Small and Medium Enterprises (MSMEs), the government will be pushing for more players from both private as well as public sector to join the TReDS mechanism, Financial Services Secretary Rajiv Kumar said.

Rajiv Kumar in a press interview informed that the number of private sector companies and state run firms as well as public sector banks on the Trade Receivables Electronic Discounting System (TReDS) is increasing at a good pace, helping faster mechanism for the payments to the MSMEs.

Also recently Bank of India signed MoU with the Receivables Exchange of India Ltd (RXIL) as a Trade Receivables Discounting System (TReDS) partner for discounting invoices of MSMEs on digital platform. With the bank signing MoU, it joins the list along with other Public Sector banks including State bank of India, Union Bank, IDBI, Dena Bank and Oriental Bank of Commerce.

TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers.

Also the mechanism enables discounting of invoices of MSME sellers raised against large corporate, allowing them to reduce working capital needs. (KNN/ DA)